Term Sheet

The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley

Corsair opts for sale over IPO?

April 26, 2013: 11:28 AM ET

Complete_FrontPrivate equity firm in talks to buy maker of PC gaming hardware.

FORTUNE -- Francisco Partners is in talks to acquire Corsair Components, a Fremont, Calif.-based maker of gaming hardware for personal computers, according to a regulatory filing.

Corsair was one of several companies that indefinitely postponed its IPO last spring after the Facebook (FB) debacle, pledging to "re-launch when equity conditions are more favorable." It kept its registration papers on file with the SEC, but did not provide subsequent updates.

For 2011, Corsair reported around $19 million in net income on $455 million of revenue. Its Q1 2012 earnings were $3 million on $132 million in revenue.

It's an interesting move for Francisco, which had been part of the Blackstone Group-led consortium that last week opted against making a formal buyout offer for Dell Inc. (DELL). One of the reasons Blackstone gave for its change of heart was the PC industry's sharp decline in Q1, but Corsair arguably is more dependent on the PC market than is Dell (albeit at a much different scale).

Fortune left messages with representatives of both Corsair and Francisco, but has not yet heard back from either.

Sign up for my daily email newsletter on deals and deal-makers: GetTermSheet.com

Join the Conversation
About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

Email a Tip | @danprimack | RSS
Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by WordPress.com VIP.