Last updated on July 10th, 2024 at 11:51 am
There’s a big change coming to the world of sim racing equipment as Corsair negotiates to buy Fanatec and parent company Endor AG.
It’s been a turbulent time for Fanatec, with new chairman and CEO Andres Ruff replacing founder Thomas Jackermeier, issues with fulfilling orders and customer service, delays and debts related to a new headquarters, and more. Corsair has already reached an agreement with Endor to fund short-term cash needs while both companies negotiate a restructuing of Endor’s approximately €70 million of debt, which would lead to acquisition if it’s approved under German insolvency laws.
“Fanatec is an incredible brand with a strong community, and we believe CORSAIR is the ideal home for Fanatec’s loyal customers, employees and business partners,” said Corsair CEO, Andy Paul. “This transaction would solve the company’s significant debt load and position the company for growth and continued product portfolio expansion.”
This sentiment is echoed by Endor. “We are very pleased to have found a strategic investor in Corsair who knows our market well and wants to invest for the long term,” said Andres Ruff, CEO and Chief Restructuring Officer of Endor.
What this means for Fanatec?
In an official statement from Endor, it confirms that the management board reviewed offers from various investors including the current main shareholder (founder and former CEO Thomas Jackermeier), and is to be restructured due to imminent insolvency. Part of the plan includes a partial waiver by the banks, and a complete capital reduction “which would lead to current shareholders leaving the company without compensation” along with Endor AG shares being delisted, so the company would become privately owned.
It would become part of Corsair Gaming, which was founded in 1994. Corsair is NASDAQ listed, and has been on a run of acquisitions since 2018, having picked up Elgato Gaming, Origin PC Corp, SCUF gaming and keyboard retailer Drop. It’s products cover PCs and gaming from components and peripherals to complete systems, having originally focused on memory modules and drives.
So along with solving the current debt issues, Fanatec could benefit from an increased purchasing power as part of Corsair, access to resources around supply and logistics, and potential collaborations considering Scuf controllers and Elgato stream decks are popular choices for a lot of gamers and streamers. And Corsair has a fairly decent reputation for customer service and product reliability, along with the possibility to include integrations for their PC components.
It may also mean more distribution channels through physical and online retailers, and the funding to potential continue existing sponsorships and partnerships.
What it could mean for sim racers?
In the short term, little is likely to immediately change. But access to the knowledge, support and funding from Corsair should result in improvements to current distribution, logistics and quality control issues, along with better customer support, which is all good news for existing and future owners of Fanatec sim racing equipment.
The existing product roadmap might not change immediately, following the recent launch of the Fanatec CSL cockpit and new officially licensed F1 sim racing wheel. But along with new collaborations and integrations, it may mean Fanatec choose to be more aggressive with their pricing to undercut competitors, assuming they can benefit from the increased buying power by being part of Corsair.
Overall, it seems like a positive outcome for almost everyone, including sim racers. While shareholders may lose their investment, it wouldn’t have been worth much had Fanatec entered into insolvency. And sim racing fans will get more reliable sales and service, potentially better products, and possibly at a lower price, which could mean costs come down across the industry as other brands respond.
Check out all our coverage of the Fanatec range of sim racing wheels and pedals, here, along with everything related to the company.
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