Elmsford, N.Y. - Gaming audio accessories supplier Turtle Beach announced that Stripes Group, a New York-based venture capitalist firm, has acquired a majority position in the company.
Stripes Group said its equity stake was acquired primarily from passive investors while Turtle Beach's managing founders, who will continue in their current leadership roles, retain nearly their entire ownership stake post transaction.
Ken Fox, founder and managing Partner of Stripes Group, will join the Turtle Beach board and Ron Doornink, an operating partner at Stripes Group and the former president of Activision, becomes executive chairman of Turtle Beach.
Carmine Bonanno, founder and CEO of Turtle Beach, said, "After an extensive process, we are extremely pleased to partner with Stripes Group and to have the opportunity to work closely with Ron Doornink. Stripes is committed to our vision of developing superior audio products for gamers and has a track record of helping entrepreneurs achieve bold goals through team development, operating experience and strategic expertise."
Fred Romano, founder and COO of Turtle Beach, added, "As we begin to quickly make material investments in our operations and supply chain to meet consumer and retail demand for Turtle Beach products, the timing of this transaction with Stripes simply could not be better."
"Carmine, Fred and the entire Turtle Beach team have done an exceptional job capturing the No. 1 market share position in the rapidly growing video gaming audio peripheral market by developing technically superior products," said Doornink. "This business couldn't be a better fit with the investment strategy of Stripes Group. The Turtle Beach brand has a fanatical following among influential hardcore gamers and a long track record of developing technically superior audio products. I am thrilled to have the chance to partner with Turtle Beach to meet growing consumer demand by increasing our retail distribution and accelerating our pace of new product development."
With the deal Turtle Beach said it has received new senior term debt from RBC Bank and PNC Bank "to support rapid growth and meet oversubscribed channel and customer demand."
Stripes Group, founded in 2003 and based in New York, is a private investment firm focused on growth-stage minority and majority investments in rapidly growing and profitable internet, software-as-a-service, technology-enabled services and branded consumer products companies. Stripes Group typically partners with founder-owned and operated companies that have had no prior institutional investors, the company said in a release.