Take-Two Interactive Software has sent word that accessory provider Mad Catz has acquired assets and assumed certain liabilities of Joytech. The deal was worth approximately $3.7 million.
One of the chief reasons for Mad Catz to buy Joytech was to open a European product development effort and strengthen Mad Catz’ sales team. Joytech is also a third-party video game peripherals and audiovisual accessories manufacturer and has retail distribution in Europe and North America. Mad Catz feels that the acquirement will add at least $10 million in annual revenue, influence Mad Catz’ existing infrastructure along with gaining several new customers and products. It expects the acquisition to be accretive within the first year of completion.
Darren Richardson is the president and chief executive officer of Mad Catz. He says, “This transaction is consistent with our strategy to continue to grow profitably, in part by diversifying our product line-up and geographic reach. Joytech’s strong presence in Europe and growing presence in North America are expected to complement our current operations and further enhance our worldwide distribution network enabling Mad Catz to more efficiently deliver a larger portfolio of innovative gaming accessories to our customers worldwide.”
He also indicated that Mad Catz wants to use such supplementary acquisition opportunities that can increase shareholder value and said that they will diversify Mad Catz’ product offerings and market reach. Last year, Mad Catz had also com out with an arcade gamestick for the Xbox 360.