Mobile accessories distributor Cellnet has expanded into gaming software and accessories with its acquisition of specialist distributor Turn Left Distribution (TLD).
The deal brings in a portfolio of brands including Capcom, Koei Tecmo, Konami, Steel Series, Thrustmaster and Plantronics while adding supplier partnerships with JB Hi-Fi, EB Games, Target, Big W and Harvey Norman.
“This is an incredibly exciting time for Cellnet as we move into a new category which is a high growth area for our existing trading partners,” Cellnet chief executive Alan Sparks said.
“It provides Cellnet with the opportunity to lean on our distribution and category management expertise, which has made the company a leader in mobile accessory distribution across Australia and New Zealand. This acquisition is a great fit for our current clients and a solid foundation for us to expand our reach.”
He added that the acquisition is an ideal addition to the business, citing the gaming market’s growth, and could help fuel further expansion and product diversification.
The deal is worth $6 million, with a combination of $4 million cash and $2 million in Cellnet shares, plus earn-out payments of up to $1 million as well as overperformance and incentive payments. It is expected to complete by 10 September.
TLD chief executive Paul Elliot and general manager Belinda Campos will join Cellnet’s leadership team as TLD executives.
“Cellnet offers an exciting opportunity for Turn Left to further strengthen its services, expanding across the interactive entertainment space and beyond,” Elliot said.
“With our range of category-leading publishing partners and clients, the acquisition supports Cellnet’s local growth strategy of exploring adjacent categories. The experience and knowledge of the interactive entertainment space that comes with Turn Left’s high-performing team, along with Cellnet’s far reaching capabilities, makes for a very bright and exciting future.”
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