The plot thickens, as Corsair signs an agreement to “negotiate exclusively” with the beleaguered sim racing equipment manufacturer.
Update May 16, 2024
Since Corsair and Fanatec's parent company Endor AG have entered discussions as part of the restructuring negotiations starting on May 9, both companies have defined and agreed to certain steps to take next, according to a press release by Endor. These steps are met "with the approval of the lending banks and the Supervisory Board."
The release reiterates the plan of Corsair providing the needed funds as part of the restructuring to avoid the imminent insolvency Endor is facing. Interim funding is set to be provided in "tranches", with the final aim being the takeover of Endor by Corsair "to stabilise the company without external debt", according to the press release.
Endor's CEO and Chief Restructuring Officer states that "during the exclusive negotiations, we perceived CORSAIR as a reliable partner that not only has the financial resources, but also knows our market well and wants to invest for the long term. Following a comprehensive review, the lending banks also decided not to support other restructuring offers because they did not believe they were suitable to avert the threat of insolvency.”
While this plan has been agreed upon, it has not been signed off yet. The press release does give a time frame for this, however, stating that "a binding agreement is expected to be signed in mid-June and submitted to the restructuring court in Munich in the near future."
Original Article May 9, 2024
American gaming peripheral giant Corsair is in discussions to purchase Fanatec and parent company Endor AG.
The German sim racing equipment manufacturer has been going through a transformational period of late. First, a condition of lending banks was to dismiss company founder Thomas Jackermeier from the Chief Executive Officer role.
With that move taking place at the end of March, Andres Ruff – who was initially appointed as Chief Restructuring Officer – was placed in the CEO role in mid-April.
Late last month, the Landshut-based company issued another statement, discussing a liquidity requirement of €25 million by October 2024 and even a proposed re-investment from Jackermeier.
At the time it specifically mentioned that talks were ongoing with "several investor groups", and now it seems Corsair is the primary choice.
“The Management Board entered into a term sheet to negotiate exclusively with US-based leader in high-performance gear and systems for gamers, content creators, and PC enthusiasts CORSAIR® (Nasdaq: CRSR) on the restructuring of the company, concluding an open-ended and intensive examination of various offers from investors and after consultation with its lending banks,” reads an Endor AG statement posted 8th May.
This does not mean that Corsair will definitively purchase Fanatec, but that is the plan. It also means the Californian company is the only entity that Endor AG will presently entertain discussions with.
“As part of the process, the Management Board has reviewed offers from various investors, including the efforts of the current main shareholder to create their own viable concept. However, such a concept has not yet been successfully created,” it continues.
This potentially discounts for now, at least during Corsair discussions, Jackermeier’s plot to return to the helm – the gimlet-eyed former leader remains the majority shareholder of the company.
According to the statement, Fanatec will be restructured due to “imminent insolvency”, and during the process, an agreement is expected to be reached. The end of this month is the current target.
As part of the process, it is anticipated that Corsair will acquire Endor AG (Fanatec) and “provide sufficient financial resources to stabilize the company without any external debt.”
Speaking of debt, Endor AG claims to have €70million of “external bank debt”.
Should this deal be concluded, Endor AG (and thus Fanatec) will cease to be a public listing, becoming privately owned and delisted from stock exchanges. Current shareowners are not set to receive compensation, according to Endor AG.
Shares shrunk to their lowest since 2016 on Thursday morning early trading following the news.
Fanatec has a vast sim racing ecosystem across PC and console, is one of only two manufacturers to produce licenced PlayStation-compatible direct drive wheel bases and just extended its licencing deal with Formula 1.
Corsair Gaming primarily creates PC components, gaming PCs and accessories. It also owns popular streaming equipment brand Elgato and customised controller creators SCUF Gaming.
Update May 16, 2024
Since Corsair and Fanatec's parent company Endor AG have entered discussions as part of the restructuring negotiations starting on May 9, both companies have defined and agreed to certain steps to take next, according to a press release by Endor. These steps are met "with the approval of the lending banks and the Supervisory Board."
The release reiterates the plan of Corsair providing the needed funds as part of the restructuring to avoid the imminent insolvency Endor is facing. Interim funding is set to be provided in "tranches", with the final aim being the takeover of Endor by Corsair "to stabilise the company without external debt", according to the press release.
Endor's CEO and Chief Restructuring Officer states that "during the exclusive negotiations, we perceived CORSAIR as a reliable partner that not only has the financial resources, but also knows our market well and wants to invest for the long term. Following a comprehensive review, the lending banks also decided not to support other restructuring offers because they did not believe they were suitable to avert the threat of insolvency.”
While this plan has been agreed upon, it has not been signed off yet. The press release does give a time frame for this, however, stating that "a binding agreement is expected to be signed in mid-June and submitted to the restructuring court in Munich in the near future."
Original Article May 9, 2024
American gaming peripheral giant Corsair is in discussions to purchase Fanatec and parent company Endor AG.
The German sim racing equipment manufacturer has been going through a transformational period of late. First, a condition of lending banks was to dismiss company founder Thomas Jackermeier from the Chief Executive Officer role.
With that move taking place at the end of March, Andres Ruff – who was initially appointed as Chief Restructuring Officer – was placed in the CEO role in mid-April.
Late last month, the Landshut-based company issued another statement, discussing a liquidity requirement of €25 million by October 2024 and even a proposed re-investment from Jackermeier.
At the time it specifically mentioned that talks were ongoing with "several investor groups", and now it seems Corsair is the primary choice.
“The Management Board entered into a term sheet to negotiate exclusively with US-based leader in high-performance gear and systems for gamers, content creators, and PC enthusiasts CORSAIR® (Nasdaq: CRSR) on the restructuring of the company, concluding an open-ended and intensive examination of various offers from investors and after consultation with its lending banks,” reads an Endor AG statement posted 8th May.
This does not mean that Corsair will definitively purchase Fanatec, but that is the plan. It also means the Californian company is the only entity that Endor AG will presently entertain discussions with.
“As part of the process, the Management Board has reviewed offers from various investors, including the efforts of the current main shareholder to create their own viable concept. However, such a concept has not yet been successfully created,” it continues.
This potentially discounts for now, at least during Corsair discussions, Jackermeier’s plot to return to the helm – the gimlet-eyed former leader remains the majority shareholder of the company.
Fanatec Set To Go Private If Corsair Plan Succeeds
According to the statement, Fanatec will be restructured due to “imminent insolvency”, and during the process, an agreement is expected to be reached. The end of this month is the current target.
As part of the process, it is anticipated that Corsair will acquire Endor AG (Fanatec) and “provide sufficient financial resources to stabilize the company without any external debt.”
Speaking of debt, Endor AG claims to have €70million of “external bank debt”.
Should this deal be concluded, Endor AG (and thus Fanatec) will cease to be a public listing, becoming privately owned and delisted from stock exchanges. Current shareowners are not set to receive compensation, according to Endor AG.
Shares shrunk to their lowest since 2016 on Thursday morning early trading following the news.
Fanatec has a vast sim racing ecosystem across PC and console, is one of only two manufacturers to produce licenced PlayStation-compatible direct drive wheel bases and just extended its licencing deal with Formula 1.
Corsair Gaming primarily creates PC components, gaming PCs and accessories. It also owns popular streaming equipment brand Elgato and customised controller creators SCUF Gaming.
News In Summary
- Endor AG is the publically-listed parent company of Fanatec, founded by Thomas Jackermeier in 1997
- Jackermeier was ousted from his role of CEO in March, as requested by loaning banks
- Andres Ruff appointed replacement CEO in April
- Share price dips by over 90% that same month, when compared to the same time in 2023
- Jackermeier creates a plan to reinvest and regain control, which has so far not been accepted
- It becomes apparent that Endor AG has €70million of “external bank debt” and is facing “imminent insolvency”
- Corsair (gaming PCs, also owns Elgato and SCUF) signs agreement to be the only potential buyer who can negotiate, 8th May
- Corsair's plan, should it go through, is to purchase Endor AG (and thus Fanatec), remove it from the stock market and somehow compensate existing shareholders
- Shares shrunk to their lowest since 2016 following the news
- The deal is not yet concluded
