ACCO Brands to Pay $ 340 Million to Acquire Seattle-area Game Controller Company PowerA
ACCO, the publicly traded company behind brands like Swingline, Mead, Five Star and Texta, has agreed to acquire Woodinville, Wash.-based gaming hardware maker PowerA from its former owners in Bensussen Deutsch & Associates.
ACCO first press release reveals that the acquisition included “total initial consideration” of $ 340 million, plus a cash earn-out of up to $ 55 million depending on PowerA’s achievement of unspecified growth targets over the two coming years.
Under its new ownership, PowerA will retain its current employees and head office in Woodinville. Co-founder and President Eric Bensussen will also remain on board as a team leader.
âBeyond next year, the global infrastructure and operational resources put in place by ACCO Brands will provide PowerA with a vast opportunity to continue our current growth trajectory, enabling us to deliver the products our fans love to most. players around the world, “Bensussen said in a statement. E-mail.
PowerA, founded in 2009, produces third-party hardware and accessories for the console and mobile game market, such as controllers, chargers and screen protectors. It forecasts net sales of around $ 200 million in 2020, a 20% increase from 2019 and a profit of $ 50 million.
Acquiring PowerA is a surprising move on the part of Illinois-based ACCO, which is arguably best known for its various ranges of office supplies. If you are an American and have ever owned a spiral notebook or stapler, chances are it was made by an ACCO brand.
However, ACCO also owns Kensington, which manufactures a variety of accessories for the PC market (including security locks compatible with the Xbox Series X). initially appear.
ACCO’s plans for PowerA going forward include optimizing development and supply chains between PowerA and its holding company Kensington, as well as expanding PowerA’s commercial presence in Europe, the Middle East. and in Africa.
Most importantly, the acquisition of PowerA is part of ACCO’s plan to scale its business. “This acquisition represents a major step in our continued strategy to make ACCO Brands a faster growing, consumer-focused company,” ACCO President Boris Elisman said in a statement. âOur computer accessories business in Kensington has grown significantly over the past few years. PowerA is a similar company to Kensington, but is in the console gaming accessory market. It will be a great fit.
Are you ready to become a next-gen champion?
– Power playA (@PowerA) November 11, 2020
PowerA was founded in 2009 by Bensussen and Jay Deutsch, as a department within their Woodinville-based freight agency Bensussen Deutsch & Associates. Its breakthrough product is undoubtedly the MOGA, a range of specialized controllers and phone clips for fans of mobile games.
PowerA is also known for its officially licensed gamepads for the PlayStation, Xbox, and Nintendo consoles, like last year’s. The Legend of Zelda-Upgraded themed wireless controller for the Switch.
Over the past two years, PowerA has expanded its product line to include headsets, as well as a new line of high-end controllers under the FUSION label. It acquired the Californian company LucidSound in June, by integrating its co-founders into the PowerA team in order to further develop its activity in audio options.
Further announcements for the PowerA product line are promised for 2021. Its next upcoming accessory, the âNanoâ Rechargeable Compact Controller for Nintendo Switch, has experienced manufacturing delays due to COVID-19 and has been postponed until at an unspecified point this winter.