Turtle Beach Announces Update on Its Return of Capital Strategy to Shareholders

Leading gaming accessory maker Turtle Beach Corporation (Nasdaq: HEAR) (“Turtle Beach” or the “Company”) announced today its Board of Directors has modified its previously communicated near-term return of capital plan to shareholders, given the overwhelmingly positive reaction to the Company’s recent transformational acquisition of Performance Designed Products (“PDP”) and the strong underlying trading price of the Company’s shares.

With today’s announcement, the Board of Directors (the “Board”) no longer intends to launch the previously announced modified “Dutch auction” Tender Offer (the “Tender Offer”) to purchase up to $30 million of its common stock (the “Common Stock”) at a price per share not less than $13.75 per share and not greater than $15.00 per share. Since the acquisition of PDP and the intent to launch the Tender Offer was announced on March 13, 2024, the average trading price of the Company’s shares has surpassed the highest end of the Tender Offer range indicated, with the most recent closing price of the shares 11-21% above the range, and the Board believes the proposed Tender Offer would only receive limited participation. The Board has determined that launching a tender offer estimated to receive only limited participation would not achieve the Company’s objectives while at the same time creating significant and unneeded costs for the Company that are not in the best interests of investors.

In its continued effort to evaluate capital allocation priorities, the Board has determined that the best course of action to continue to return capital to shareholders is to increase the Company’s share repurchase program by $30 million. Under the revised share repurchase authorization, the Company is authorized to acquire up to a total of $55 million of shares of its common stock, including the $8.4 million already acquired under the program, at its discretion from time to time in the open market, or in block purchases or privately negotiated transactions, subject to compliance with the applicable restrictions in the Company’s debt agreements. The current balance remaining for the repurchase program, including today’s increased authorization, is $46.6 million.