Logitech is about to expand its market with the acquisition of Saitek, Mad Catz.
It was exactly 9 years ago when Mad Catz bought Saitek, a game hardware maker for an amount of $30 million. Unfortunately, they have to sell it to Logitech due to its recent loss.
Mad Catz reported to have at least $11 million loss during its most recent fiscal year. The massive drop led to terminate third of its staff early this year. Its fortunes started to crumble when Darren Richardson, Thomas Brown and Whitney Peterson resigned from their positions as CEO and president, chairman, and senior VP of business affairs respectively.
The change was part of the restructuring plan to cut at most 37% of company's total workforce. Their goal was to lower operating costs while increasing its efficiency.
"Our Board and management team are highly focused on enhancing shareholder value and we believe this transaction is consistent with our ongoing efforts, enabling us to improve our financial position and working capital," said Mad Catz chief Karen McGinnis in a press release confirming Logitech's acquisition with Saitek. "We are confident that the sale of the Saitek brand and product line, along with the other previously-disclosed Company-wide initiatives, will result in improved financial performance and shareholder value."
McGinnis was named the new CEO and president of Mad Catz. Today, McGinnis aims to continue selling its product under its own name.
On the flipside, the acquisition of Saitek will catapult Logitech's name in the gaming controller industry. Logitech has already a set of gaming controls on hand. With the current addition of Saitek's controllers such as a wheel driving simulation, joystick, as well as pedals and panels - it opens up a new era and market to the company.
This will ultimately help the company deal with the boom of virtual reality gaming.