Corsair sells a majority stake to private equity for $525 million

Corsair announced this morning that it's selling a majority share of its business to private equity firm EagleTree Partners for $525 million. The company says CEO Andy Paul will remain in his leadership role and that he'll maintain a "sizable equity stake" of his own in the business. Paul says the move will allow Corsair "to continue to focus first and foremost on our loyal and passionate customers, and accelerate our investment in innovation and new technology and products to enhance the quality experience that enthusiasts and gamers have come to expect from us."

As any TR reader already knows, Corsair has branched out from its traditional memory business into keyboards, mice, headsets, liquid coolers, graphics cards, flash drives, solid-state drives, fans, cases, and other accessories since its founding in 1994. The company recently combined those areas of expertise into the high-quality, high-performance Corsair One compact PC. EagleTree Partners has held stakes in reputed all-American brands like Harry and David and All-Clad, so we're curious to see where the firm takes Corsair with its guidance. The growth of interest in PC gaming in recent years suggests the future should be bright.

Comments closed
    • Fonbu
    • 2 years ago

    Poetic interactional fast ship that Corsair! Arrr Arm chair captains.

    • cygnus1
    • 2 years ago

    Jeff, I didn’t catch this originally, but your article is incorrect. You’ve misinterpreted the press release.

    [quote<]Corsair announced this morning that it's selling a majority share of its business to private equity firm EagleTree Partners for $525 million. [/quote<] Corsair did no such thing. From the first line of the press release. [quote<] Corsair ... announced today that EagleTree Capital (“EagleTree”), formerly Wasserstein Partners, has reached a definitive agreement in partnership with current management to acquire a majority stake in CORSAIR from Francisco Partners and several minority shareholders. [/quote<] This is not a new investment in Corsair. EagleTree is not purchasing ownership/equity from Corsair. The ownership stake is coming from other owners, not from Corsair. I don't believe Corsair is receiving any capital in this transaction. This is the privately owned equivalent of a publicly traded company having a controlling stake of its shares purchased and the company brokering the deal to make it happen.

    • Chrispy_
    • 2 years ago

    I love reading the utter BS that PR agencies rustle up for this sort of situation.

    [b<]Corsair have sold out, plain and simple. That's all there is to it.[/b<] ...and yet we have statements full of waffle-turd language like this: [quote<]the move will allow Corsair to continue to focus first and foremost on our loyal and passionate customers, and accelerate our investment in innovation and new technology and products to enhance the quality experience that enthusiasts and gamers have come to expect from us."[/quote<] If we were playing BS Bingo, that single sentence would have the whole room screaming BINGO!

      • kuraegomon
      • 2 years ago

      According to the Corsair wikipedia link: “On July 26, 2017, EagleTree Capital entered into an agreement to acquire a majority stake in Corsair from Francisco Partners and several other minority shareholders in a deal valued at $525 Million. [b<]Corsair Founder and CEO Andy Paul retains his equity stake[/b<] and remains in his role as CEO." If that is accurate, then this is really Andy Paul's equity partners cashing out. If he himself didn't sell any equity to EagleTree, then I don't see how you can say that Corsair's leadership "[b<]sold out[/b<]". Of course, the exact wording of a Wikipedia entry is likely worth the paper it's printed on...

        • Chrispy_
        • 2 years ago

        Whoa whoa whoa there,

        You’re making the HUGE assumption that I give a crap about how Corsair is financed, OR that I even read any of the three links in the article 🙂

        I was posting to slag off godawful, hideous marketing language as waffle-turd.

        That is all, thank you.

          • kuraegomon
          • 2 years ago

          Roger that – please rant away. I’ll suspend serious rebuttals and shift to popcorn-chewing mode.

            • Chrispy_
            • 2 years ago

            OM NOM NOM :V

      • Jeff Kampman
      • 2 years ago

      If I understand it right, Corsair was already majority-owned by another private equity firm before this transaction. They’re only “selling out” in the sense that they successfully grew under the guidance of that firm and now need more capital to continue growing.

        • cygnus1
        • 2 years ago

        [quote<] acquire a majority stake in CORSAIR from Francisco Partners and several minority shareholders [/quote<] The ownership stake is coming from other owners, not from Corsair. I don't believe Corsair is receiving any capital in this transaction. About the only thing this does is, if you can find what percentage EagleTree bought, is put a valuation on Corsair.

        • Kougar
        • 2 years ago

        To continue growing? Normal growth should be accomplished by the company’s own profits. Otherwise once the investment runs out the company won’t be able to sustain itself and bad things start to happen.

        The use of capital infusions like this should be to expand a company into new markets or expand its offering portfolio in existing markets. Or the most common reason, the previous stakeholders simply wanted to take some cash out of its investment. They will talk about growth in the marketingese regardless of how much if any of the funds actually go into the company itself.

      • Freon
      • 2 years ago

      Having been part of several companies who were bought out either by private equity or other larger public companies, the waffle-turd langauge is often very true. The influx of capital support often means growth for the company and increased R&D/product-development spend.

      • CuttinHobo
      • 2 years ago

      Here’s a taste of waffle-turd that I scoffed at in a recent email regarding a promotion in a sister-company.

      “… Will be responsible for profitably growing our existing customer base through wallet share gain campaigns, reducing churn and new product monetization.”

      Barf.

        • Chrispy_
        • 2 years ago

        BINGO!

        • Kougar
        • 2 years ago

        Those are the sorts of meaningless buzzwords all the here-today, gone-tomorrow startups tend to use, or companies that are dancing along the edge of the precipice. Sends up big warning flags to me.

          • CuttinHobo
          • 2 years ago

          Fortunately for me, these grotesque announcements keep coming from the same distant sister-company, not wide spread or from the parent. *Whew!*

    • Thresher
    • 2 years ago

    I have been using Corsair for years, but I think the quality of their new cases gets worse with every model.

    The original Corsair Obsidian cases were 100% steel. Now they’re steel and cheap feeling plastic. The cases are still sound, but the materials are getting worse.

    • kuraegomon
    • 2 years ago

    I’ve been relying on the Corsair-Asus memory-motherboard compatibility alliance for many years now, and I haven’t been let down yet. I see every reason to hope this endures. If/when the CEO sells out and departs, on the other hand, then I think all bets are off.

      • just brew it!
      • 2 years ago

      Never had a problem using Kingston RAM with Asus either. Maybe Asus just does a good job with memory compatibility.

        • kuraegomon
        • 2 years ago

        With certain vendors, absolutely. Corsair and Kingston are probably the top tier, with Patriot, G-Skill, Mushkin next down.

          • MOSFET
          • 2 years ago

          I would put Crucial and Samsung at the top tier.

    • Welch
    • 2 years ago

    Here is to hoping nothing changes with Corsair. Really getting sick and tired of my favorite tech companies getting bought up to have some pencil pushers worried about an already great bottom line to the point that parts get made crappier.

    • PBCrunch
    • 2 years ago

    Maybe the new owners will bring back the “swords” lower back tattoo logo that everyone loved so much.

    [url<]http://www.pcworld.com/article/2928996/corsair-returns-to-sails-logo-ditches-the-hated-swords.html[/url<]

      • ImSpartacus
      • 2 years ago

      Jesus, I have that stupid ass logo on my H2100.

      My classy blue V2100 broke and they replaced it with weird yellow H2100 that has that retarded logo on the side. They tell me the product is otherwise identical.

      I’ve been eyeing a nice SteelSeries H Wireless purely because it doesn’t look like a kindergartener designed it.

      • Sigeric
      • 2 years ago

      I like the swords better.

      • Gyromancer
      • 2 years ago

      I honestly never bothered to look hard enough at that logo to notice it was supposed to be two swords. That makes a bit more sense now.

    • f0d
    • 2 years ago

    i have had so many issues with corsair products that i just dont bother with them anymore
    commander mini issues
    multiple power supply issues
    multiple AIO water cooler issues
    hopefully this will give them a kick up the backside and improve things

      • srg86
      • 2 years ago

      I’ve had their power supplies and memory for years and years. Never had a single issue.

      For these items they are my main to-go brand.

        • Chrispy_
        • 2 years ago

        As someone who has bought [i<]thousands[/i<] of Corsair RAM kits and PSUs over the years, I can say with some statistical significance that in terms of reliability: [list<][*<]Their RAM that we've bought is above average, at least better than Crucial and Kingston. [/*<][*<]Their PSUs are slightly below average (comparing like-for-like 80+ bronze/gold/platinum ratings) [/*<][*<]Their RMA policy and customer service is definitely one of the better ones.[/*<][/list<]

          • Khali
          • 2 years ago

          I’ve used Corsair RAM for years with no issues. Corsair PSU’s on the other hand I have had several issues so I stick to Seasonic for PSU’s. Not had one problem with Seasonic.

          • synthtel2
          • 2 years ago

          What sorts of RAM has that mostly been? I wonder if different manufacturers are better at different speed ranges.

            • Chrispy_
            • 2 years ago

            Over so many years it’s hard to remember, but I’ve done most of the RAM purchasing for the companies I manage and I typically go for the fastest-rated JEDEC-spec stuff that the specific processor supports [i<]without[/i<] overclocking and ideally with low-profile, minimal-bling heatsinks. So DDR3-1600MHz for Haswell and Ivy, never more than 1.5V, and DDR4-2133 for Skylake and Kaby at 1.35V max. We've used Kingston, Geil, Crucial, Corsair mostly as that's what's priced competitively within the limitations above with a 3+ year warranty. About half of the RAM is Corsair over ~1000 workstations/render-nodes, and the rest is mainly Kingston or Crucial. I do more Kingston or Crucial RMA's than Corsairs because of failed memtest-x86 results than Corsair, despite Corsair populating maybe 2x-3x more DIMM slots than those brands. In fairness to all four brands, their RMA processes are good, and when Kingston screwed up really badly on one RMA they righted their wrong pretty quickly and sent me a goody bag with (Kingston-branded) USB sticks, sunglasses, a baseball hat, some discount vouchers and some other promotional freebie junk which was a pleasant (if unnecessary) surprise. Honestly though, I just want to have a PC that is built and lasts for three years without ever having to be opened or tested for faults ever again. If I were building that now after thousands of PC's it would be a rather boring: [list<][*<]Non-K Intel CPU of the previous generation [/*<][*<]with a Gigabyte Board using the retail Intel cooler [/*<][*<]populated with boring Corsair JEDEC-spec RAM at pedestrian speeds [/*<][*<]booting off a Crucial SSD [/*<][*<]with a Seasonic PSU (or a re-branded Seasonic PSU from one of several - check via JonnyGuru) [/*<][*<]Using an MSI GPU if a GPU was needed.[/*<][/list<] Don't get me wrong, that's NOTHING like the PC I'd buy for myself, but if I wanted the highest chance of it never needing attention again (important for a builder) then that's what I'd currently choose.

            • synthtel2
            • 2 years ago

            Thanks! That is interesting, especially since I’ve been thinking of Crucial and Kingston as top-tier.

            Do you mind sharing your thoughts on motherboard reliability, while we’re on the subject? It sounds like you work with bigger sample sizes than most of us ever will. I’ve barely been able to discern trends other than all brands being a bit hit-or-miss, and haven’t found a better way to choose than reading reviews carefully.

            • Chrispy_
            • 2 years ago

            Less variety with motherboards I’m afraid, since it’s really nice to be able to use the same cloned disk image across multiple machines without any extra work.

            At one point – round about Sandy-Bridge era – we built a large batch using Asus P8P67 boards, because they had (supposedly) the most mature UEFI BIOS. Even though they were the B3 revision (to counter the SATA port bug) and the BIOS had already been updated several times, they were buggy as hell with lots of broken features in the BIOS that plain didn’t work. Several of the boards also failed after 18+ months and some even started to RUST!

            They weren’t cheap boards and their support was pretty terrible. We tried Gigabyte for the next batch (Ivy bridge) and the difference was night and day – higher quality feel at a lower price and the BIOS wasn’t a mess. I’ve had Asus boards in my personal rigs over the years too and always been left wanting more for the price I paid.

            So, in short – I really trust Gigabyte to make a good mid-range board, but my large-sample size experience is limited to an small number of specific models and not really something I can make any general recommendations from.

            • synthtel2
            • 2 years ago

            That’s still a weightier piece of data than most. Thanks again!

          • BurntMyBacon
          • 2 years ago

          I don’t have [i<]thousands[/i<] under my belt, but I'll add my [i<]hundreds[/i<] to you statistic with only one deviation (more of a note really). I've noted that the reliability of Corsair PSU's is different depending on whose design was used. There are some older HX/AX series units based on a Seasonic design as well as some AX series units based on a Flextronics design that seem to be reliable (and well performing). Looking across their entire product range I completely agree with your assessment. On another note: Who have you had the best experience with in these categories?

            • Chrispy_
            • 2 years ago

            Last three years?

            CX are too cheap for Bronze – Lots of problems.

            CS generally okay, the odd failure but not statistically significant

            RM series are awesome. I don’t usually bother because of the cost, but I use RM’s in the “spares pool” now because when I put an RM in a machine I’m 99.99999999999% confident that any continued problems are nothing to do with the PSU.

            Man, I love my job. I must be the only multi-company IT manager who still wears shorts and trainers and gets his hands dirty with actual hardware. Too many of my comrades wear suits and spend time in meetings that should have been an email. 🙁

            • wizardz
            • 2 years ago

            makes two of us. i loove getting my hands dirty, and i hate wearing anything more than “casual professional”.

          • Brainsan
          • 2 years ago

          I’m only in the hundreds, but I’m very happy with their RAM and power supplies.

        • f0d
        • 2 years ago

        i dont have any issues with memory (which is why i havnt mentioned it) but i have had horrible experience with their PSU’s

        my own personal AX760i is about to go back to corsair for the 4th time – i dont even use it in my main pc anymore because im tired of pulling it out to return it
        heres a pic of when it was in my main system for proof [url<]http://s23.postimg.org/r7b34xdtn/P1010501.jpg[/url<] 6 CX and 4 VS PSU's dying within a year on systems i have built for others a h80i and 2 h100i pump failures corsair commander mini software is horrible and has never been in a fully working state, throughout the entire time i have had it i have not been able to adjust fan speed correctly depending on the thermal probes and there are various other problems that others have had with the software that the corsair forums are full with nah sorry i just cant risk using anything of theirs anymore when there is more reliable options

      • derFunkenstein
      • 2 years ago

      Their power supplies are loud compared to similarly-priced competitors. The CX series goes against Seasonic’s S12II, and I was floored to hear (or not hear, as it turns out) how silent a 620W S12II is compared to a CX650. Right now the CX650 is $55 on Newegg (before $20 rebate card) and the 620W S12II is $50.

    • DragonDaddyBear
    • 2 years ago

    [quote<]The growth of interest in PC gaming in recent years suggests the future should be [b<]bright[/b<][/quote<] RGB LEDs everywhere!

      • yeti
      • 2 years ago

      Arrggghhh, my eyes, my eyes, I can see the insides of my eyes!!!

    • Neutronbeam
    • 2 years ago

    I sense a disturbance at the Fremont, California, Ferrari/Lamborghini/Aston Martin dealerships.

      • Chrispy_
      • 2 years ago

      Heh, whenever I head about companies that sold majority stakes, I have a mental image of the previous owners heading to their nearest yacht dealership.

    • Mad_Dane
    • 2 years ago

    RIP Corsair, you’ve seen the last dollar from me…

      • maxxcool
      • 2 years ago

      I have never bought a single thing from Corsair. It has been Gskill for ram for my AMd and INTEL systems and Samsung SSds the entire way.

        • BillyBuerger
        • 2 years ago

        Only thing I can think of that I bought was a K90 keyboard. I wasn’t impressed. I suppose I should give them some credit for being my first dip into mechanical keyboards. But I quickly moved on to better options.

          • Mad_Dane
          • 2 years ago

          What’s the point of telling me your purchase history? I speak for me not you!

            • just brew it!
            • 2 years ago

            What’s the point of boycotting a company just because it’s been sold, as long as the products still provide reasonable value for your money? Did EagleTree Partners run over your dog or something?

            • Mad_Dane
            • 2 years ago

            They just sold their soul to the devil, Goldman Sachs owned corps will never see a dollar from me, it’s called principles!

            Unbelieveable amount of butthurt cunts here!

            Too hard to speak your own mind?

            • K-L-Waster
            • 2 years ago

            If you’d like to name a peripheral manufacturer who isn’t at least partially owned or has never worked with venture capital, we’d love to hear it.

            (I’m thinking it’s going to be a pretty short list….)

            • the
            • 2 years ago

            Products on the market don’t change overnight when a sale like this happens but oh, the support structure for those certainly can.

            I wouldn’t say that I have a company black listed, I do like their products, but they were recently acquired by a company whose support structure I absolutely despise. So I’m patiently waiting on other user feedback and/or an issue crops which that requires me to engage their support. I’m not rushing to purchase anything new from them until I know that I can get the support I had previously.

        • Vaughn
        • 2 years ago

        You’re missing out my Corsair AX 750 PSU is excellent and still under warranty 7 Years!!

          • maxxcool
          • 2 years ago

          If my 1000w Xion ever dies I actually would put them on the short list to compare single rail 12v 750+ watt PS’s from ..

            • Vaughn
            • 2 years ago

            Never heard of Xion.

            And the newegg reviews don’t paint a good light of them….

            Don’t think I would trust that to power my rig.

            • maxxcool
            • 2 years ago

            Ancient. I swear they had a better rating. i wonder if there is another listing. it has been crazy solid forever, since my 1st i750 proc when they 1st shipped.

            [url<]https://www.newegg.com/Product/Product.aspx?Item=N82E16817190030[/url<]

        • maxxcool
        • 2 years ago

        LOL some Sammy and Gskill H8ters being negative dingers! LOL

      • homerdog
      • 2 years ago

      This might be a dumb question, but why?

        • derFunkenstein
        • 2 years ago

        A good question to a dumb statement.

          • Mad_Dane
          • 2 years ago

          And you sir can suck my hairy nuts. I speak my mind that’s what a comment section is for!

            • derFunkenstein
            • 2 years ago

            Great job defending your position! A++

            • Mad_Dane
            • 2 years ago

            Because calling someone’s opinion stupid really deserves a good answer, don’t attack people if you can’t handle some back, bitchmode activated…

            • derFunkenstein
            • 2 years ago

            Unsupported opinions are kind of dumb. Not my fault.

            • Mad_Dane
            • 2 years ago

            Then ask, calling people stupid will get you nowhere fucking retard!

            • derFunkenstein
            • 2 years ago

            C’mon, bro. Spread the word to end the word: [url<]http://www.r-word.org/[/url<]

            • CuttinHobo
            • 2 years ago

            Uh oh, you may once again become the turd that won’t flush!

            • derFunkenstein
            • 2 years ago

            “I am not a nugget!” -Owen Hart

            • bthylafh
            • 2 years ago

            Sounds like another ban is in order here.

            • Mad_Dane
            • 2 years ago

            Like I give a fuck, I rarely visit here anymore, all the good writers left the ship.

            • just brew it!
            • 2 years ago

            Huh. For someone who speaks his mind, you really seem to have a problem with other people doing the same…

            • Mad_Dane
            • 2 years ago

            Yea I have a problem with personal attacks, want a bone, stay on the fucking topic!

            • derFunkenstein
            • 2 years ago

            I absolutely do not want to bone.

            • Redocbew
            • 2 years ago

            And you say you’re not funny. Hah!

            • cygnus1
            • 2 years ago

            That seems like an unnecessary escalation…

            • CuttinHobo
            • 2 years ago

            You mad, bro?

            • Prestige Worldwide
            • 2 years ago

            [quote<]"And you sir can suck my hairy nuts. I speak my mind that's what a comment section is for!"[/quote<] -Donald Trump

        • Growler
        • 2 years ago

        [url<]http://i.imgur.com/Br00TCn.jpg[/url<]

        • Mad_Dane
        • 2 years ago

        Read above…

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