Parametric Sound Corp. (Nasdaq: PAMT) has completed a merger with Turtle Beach.
San Diego-based Parametric Sound develops audio products and services, including directional audio technology called HyperSound.
Turtle Beach, headquartered in Valhalla, N.Y., develops video game audio products, including gaming headsets that provide sound and for users to communicate with other while playing video games. The company is majority owned by the Stripes Group, a New York-based private equity firm. Stripes is also invested in Refinery29, a lifestyle website, and Elance, a freelancing website. In June, the firm sold its stake in MyWebGrocer Inc. to private equity firm HGGC.
The combined company should be bringing new products to markets. Turtle Beach’s headsets are sold in major retailers, such as Best Buy Co. Inc. (NYSE: BBY), Carrefour SA, GameStop Corp. (NYSE: GME), HMV, Sainsbury, Target Corp. (NYSE: TGT), Tesco and Wal-Mart Stores Inc. (NYSE: WMT).
In connection with the deal, Parametric issued shares of common stock to former Turtle Beach stockholders. The merged company is expected to trade under Parametric's Nasdaq ticker on Jan. 17.
Houlihan Lokey is Parametric’s financial adviser, while Craig-Hallum Capital Group LLC provided a fairness opinion to the company’s board of directors. J.P. Morgan Securities LLC is Turtle Beach’s financial adviser, while Dechert LLP provides legal advice.
The deal comes after investment firm the Carlyle Group (Nasdaq: CG) invested in headphone company Beats Electronics LLC.