Mad Catz acquires Saitek for $30m

Mad Catz has announced the acquisition of fellow videogames peripheral manufacturer Saitek, alongside results for its second financial quarter of 2007.

The deal cost Mad Catz USD 30 million, USD 15.5 million of which was in cash and borrowings, and the rest in convertible notes at a rate of 7.5 per cent.

The company's fiscal results were solid, and although net sales dropped sharply year on year, a significant drop in administrative and general costs led to a net income jump of 340 per cent to USD 872,000.

Saitek is best known for its premium quality PC flight simulator peripherals, and that deal follows its acquisition of Joytech from Take-Two in July this year.

Speaking on the deal, Mad Catz president and CEO Darren Richardson stated his belief that it would strengthen the company's overall offering.

"Saitek significantly enhances Mad Catz' position as one of the world's leading games peripherals companies and provides us an entree into the businesses of PC mice, keyboards and speakers and electronic chess and intelligent games.

"Its outstanding vendor operations personnel in China and administrative personnel throughout the company will not only help us grow Saitek's PC businesses, but will also support Mad Catz' continuing growth initiatives on a global basis."

Mad Catz' share price fell 10 per cent today following the announcement and results, to stand at the time of writing at USD 1.07.