Embattled Madcatz sells Saitek to Logitech for a song

Saitek is a well-regarded brand of gaming peripherals, a fact likely known by the crowd that hangs around here. Roughly nine years ago, Madcatz figured it wanted Saitek's quality items and ponied up $30 million for the company. Now, after a few difficult quarters with operating losses, Madcatz figured it was time to let Saitek go live under Logitech's wing for $13 million in cash.

Madcatz didn't have much to say about the sale. Logitech, on the other hand, calls the transaction a "tuck-in acquisition" intended to grab Saitek's product portfolio. The company hopes to complement its own "G" lineup of gaming peripherals with Saitek's gear, and mentions its G29 and G920 Driving force wheels as good companions for the incoming reinforcements.

Seeing as it paid what is a relatively small sum in cash, Logitech says "[the] asset acquisition is not considered material to Logitech's quarterly or full-year financial results." Saitek's website has already been updated with a Logitech logo, so it looks like the new parent company isn't wasting any time.

Comments closed
    • Crackhead Johny
    • 4 years ago

    For those hoping that Saitek would have a 50% off sale, they did, and you missed it.

    • ronch
    • 4 years ago

    $13M may be a song for these megaconpanies but for most of us peasants it’s like getting the finest orchestra on the planet on your payroll to have them play 5 hours a day everyday for 10 years right in your living room. Popcorn included. The finest, of course.

      • Sunburn74
      • 4 years ago

      The sale price of most companies is generally about 5x the yearly earnings. If they sold for only 13 million, their yearly earnings is only in range of 2-3 million. To put it another way, saitek is probably paying its CEO and all its employees on a yearly intake of only 2-3 million per year. The UFC for example recently sold for 4 billion dollars and has 110 employees.

        • NovusBogus
        • 4 years ago

        Interesting math adventures:

        With $2 million, they could afford to pay 33 employees $60,000 per year total comp which is if anything a little bit below average in the corporate world. Benefits are expensive.

        With $3 million revenue and an average product price of $150, they’d have sold only 20,000 units. How the mighty have fallen.

    • just brew it!
    • 4 years ago

    I guess I missed (or forgot) that Madcatz had acquired Saitek in the first place.

    On the one hand, perhaps Logitech will be a better home for them.

    On the other hand, consolidation of a large percentage of any market under a single player is ultimately bad for the consumer, and Logitech seems to be becoming the 800 lb gorilla of peripherals.

      • NovusBogus
      • 4 years ago

      I dunno about the consolidation threat, there’s a tremendous amount of competition in the peripheral world these days. Logitech used to have a near monopoly on high end keyboards and mice, but now they’re playing second fiddle to the likes of Corsair and Razer. Even if they clean up Mad Catz’s mess and Make Saitek Great Again(tm) they’re unlikely to dethrone Thrustmaster anytime soon. And if the IL-2 hardcore hardware community ever discovers large-scale manufacturing or CH discovers the 21st century, everyone else is screwed.

        • Cyco-Dude
        • 4 years ago

        “…or CH discovers the 21st century…”

        hahaha!

      • tanker27
      • 4 years ago

      Maybe so but Logitech seems to have upped their game lately. Their offerings have been top notch as of late. The G502 has been one of the best mice I’ve own in recent years.

    • NovusBogus
    • 4 years ago

    This is probably good. Mad Catz never really understood reliability and Saitek’s been suffering from one mediocre product after another. With all these high profile space sims showing up over the next couple of years the industry desperately needs some decent flight sticks, and the two of them together might become relevant again.

    • yogibbear
    • 4 years ago

    Are you saying I could have bought Saitek?

      • Tirk
      • 4 years ago

      If your personal financial situation allows you to call $13 million a, “tuck-in acquisition” then go right ahead. BTW toss over a measly $1 million in my direction, the cash infusion will make the body feel good 😉

      • morphine
      • 4 years ago

      Depends. How well can you sing?

    • Ph.D
    • 4 years ago

    MCZ somehow still not bankrupt. This is probably good news for Saitek though.

      • just brew it!
      • 4 years ago

      This move was probably intended to get them some operating cash to keep them going a few more months. Sounds like they’re circling the drain though.

        • Srsly_Bro
        • 4 years ago

        Is MadCats a publicly traded company? Their statement of cash flow might be of interest.

    • mkk
    • 4 years ago

    Hope to see some higher end Logitech flight sticks next year then, at least some tweaked Saitek models manufactured by Logitech. Saitek has some good designs but manufacturing quality seems to have dropped over the last few years.

    Saitek had been working with Star Citizen to put together peripherals optimized for the game. I hope Logitech haven’t written off that idea just yet.

    • Sargent Duck
    • 4 years ago

    Don’t think I’ve ever heard of Saitek before…

      • LostCat
      • 4 years ago

      Probably a good thing.

      • Anovoca
      • 4 years ago

      “HOW DARE YOU NOT KNOW A THING!!! -3” – gerbils

        • Crackhead Johny
        • 4 years ago

        “hey, not knowing a thing is a whatchamacallit around here!”

    • BIF
    • 4 years ago

    Oh wow. More than a 50% discount on that. I’ve been out of it for awhile. Do Saitek products still have a great track record?

      • LostCat
      • 4 years ago

      Only one I’ve had had worse drivers than anything I’ve ever owned.

      • moose17145
      • 4 years ago

      I suppose I cannot speak for all of their products, but I have a X52 Pro HOTAS and I am for the most part happy with it. I am 100% sure a Warthog is better, but I am also quite sure it is over twice as expensive as my X52 Pro was.

      Personally, I am holding out to see what Saitek comes out with for Star Citizen. CIG and Saitek paired up to make a customer Star Citizen HOTAS. But we haven’t heard much in the way of that. Wondering if Logitech will now be taking over that contract. I would assume the buyout would also include any agreements made with any third party companies.

        • Cyco-Dude
        • 4 years ago

        indeed…i guess we’ll see if that project comes to fruition or not.

        • NovusBogus
        • 4 years ago

        You’re probably not missing much. The X-56 Rhino was specifically designed for space sims, and it’s currently rocking a one egg rating on Newegg. Your X-52 Pro is the last of the truly good Saitek designs, and it’s nearly ten years old now.

        I’ve decided that the thing to do is get one of those VKB gimbals and design the most glorious joystick the world has ever known.

    • kamikaziechameleon
    • 4 years ago

    will we get the mad catz branded stuff for pc like the ratz mice?

      • Platedslicer
      • 4 years ago

      Apparently MadCatz kept their keyboard and mice brands, even though they had been originally acquired from Saitek. They’re just passing on the simulator controllers.

      [url<]http://www.anandtech.com/show/10686/logitech-acquires-saitek-brand-and-product-lines-expands-its-sim-controllers-biz[/url<] (apologies to TR staff for referencing the competition)

        • morphine
        • 4 years ago

        No worries, additional info is welcome.

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