Corsair Components, a supplier of high-performance PC gaming components, has received an investment of approximately $75 million from Francisco Partners. Francisco Partners will partner with Corsair CEO Andy Paul and the management team to further strengthen Corsair’s market-leading position among PC gaming enthusiasts. Mr. Paul and the current management team will continue to hold a substantial equity interest in the company.
“Under the leadership of Andy Paul, Corsair has built an enviable brand among videogame enthusiasts,” said Andrew Kowal, partner at Francisco Partners who leads the firm’s hardware investment activities. “This brand position was born out of the team’s great passion for delivering best-in-class products to its customers around the world.”
Stifel Financial (www.stifel.com) served as the exclusive financial advisor to Corsair Components on this transaction.
Corsair supplies products used by PC gaming enthusiasts who build their own PCs or buy pre-assembled customized systems. The company’s products include DDR3 memory upgrades, mobile storage drives, power supply units, solid-state drives, PC speakers, gaming headsets, gaming keyboards, laser gaming mice, system monitoring and control devices, PC cooling products, and computer cases. Corsair had approximately $500 million in annual revenue last year. The company was founded in 1994 and is based in Fremont, CA (www.corsair.com).
“We sought out Francisco Partners based on its rich experience with high-growth hardware companies and its reputation for operational expertise,” said Corsair CEO, Andy Paul. “Following the transaction, we are confident we will be able to better support and serve our existing customer base and core markets. Furthermore, with the support of Francisco Partners, we will continue to leverage our understanding of enthusiast audiences to expand into related adjacent product categories and geographies.”
“Corsair’s attractive growth and expanding market position realized over the last decade is a testament to its product innovation and strong execution. We look forward to partnering with Andy and the Corsair team to strengthen this foundation and build upon it through selective acquisitions,” said Mr. Kowal.
Francisco Partners pursues investments in technology companies with transaction values ranging from $50 million to $2 billion. Transaction structures include buyouts, divisional divestitures, recapitalizations, restructurings and growth equity financings. Francisco Partners is headquartered in San Francisco (www.franciscopartners.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 5-6-13