Corsair Gaming Raises $119M in Initial Public Offering, EagleTree Remains Majority Owner

Computer hardware and peripherals company Corsair Gaming (NasdaqGS: CRSR) completed its initial public offering and listed on the Nasdaq Global Select Market (NasdaqGS). The EagleTree-owned company raised $118.6M USD before expenses in the offering. Corsair sold 7.5M shares, which represents roughly 8.2% of the company’s total outstanding shares after the offering, at a price of $17 per share, less a $1.19 underwriting discount. The offering pricing put Corsair Gaming’s market capitalization at $1.56B based on 91,849,366 outstanding shares.

In total, 14M Corsair Gaming shares were sold in the IPO. In addition to the 7.5M sold by Corsair, 6.5M were sold by the company’s majority shareholder EagleTree, which still holds a 77.62% beneficial ownership in Corsair following the IPO. 

The offering’s underwriters were Goldman Sachs & Co. LLC, Barclays, Credit Suisse, Macquarie Capital, Baird, Cowen, and Stifel. The underwriters of the offering have a 30-day option to purchase up to 2.1M additional shares of common stock at the discounted IPO per share price of $15.81 from EagleTree.

Fremont-based Corsair Gaming, which was founded in 1994, was acquired by EagleTree at a valuation of $525M in 2017. In the following two years, the company grew revenues while posting net losses. In 2019, Corsair generated revenues of approximately $1.1B, up 17% from $938M in the previous year. While increasing revenues during that period, the company reduced losses from $13.7M in 2018 to $8.4M in 2019. In the first half of 2020, Corsair became profitable once again and reported a net profit of $23.8M for the first six months of 2020. During the period, the company made $689M in total net revenues, which marks a 41.7% increase year-over-year.

Subsequently to EagleTree’s acquisition of the company, Corsair made several strategic acquisitions. In 2018, Corsair purchased the gaming brand of Elgato Systems, which produces live streaming equipment. In 2019, the acquisition of custom gaming PC maker Origin followed, and earlier this year, Corsair completed the acquisition of custom controller manufacturer SCUF Gaming.

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