Exclusive-Gaming gear provider Turtle Beach nears board deal with Donerail -sources By Reuters

© Reuters. ARCHIVE PHOTO: Visitors play video games with Turtle Beach headphones at Paris Games Week, a video game trade show in Paris, France, October 26, 2016. REUTERS / Benoit Tessier

By Svea Herbst-Bayliss

(Reuters) – Donerail Group is on track to reach an agreement with Turtle Beach (NASDAQ 🙂 Corp. gaming teams said people familiar with the matter on Sunday.

Donerail, which owns 7.4% of Turtle Beach’s outstanding shares, has criticized the maker of gaming headphones and controllers for operating errors and has been pushing the company to sell. Turtle Beach maintains that it has been doing its best to find a buyer at an attractive price.

Turtle Beach has agreed to add three Donerail candidates to its board, expanding it from six to nine directors, sources said. A director is expected to retire at next month’s annual meeting.

This comes after Turtle Beach’s major shareholders informed the company that they planned to support Donerail’s board of directors candidates at the June meeting, the sources added. Donerail said in March that he planned to replace the entire board, including CEO Juergen Stark, with his own candidates. Settling in Turtle Beach will save you this board challenge.

Turtle Beach’s board has formed a strategic review committee that will be in charge of the company’s sale process and will have four members, including two directors of Donerail, according to sources. Donerail managing partner Will Wyatt will be advising the committee, sources said.

If Turtle Beach isn’t sold out in 120 days, a Donerail director and another director Donerail could help select would join the board.

Sources said the agreement between the two parties could be announced as early as Monday and asked not to identify themselves because the matter is confidential.

Turtle Beach, which has a market value of $ 275 million, declined to comment.

Its stock price has fallen 42% in the last 52 weeks, compared with a 3.4% drop in the.

Turtle Beach said earlier this month that it has been involved with potential buyers on three different occasions over the past five years.

Last year, Donerail offered to buy Turtle Beach for $ 36.50 per share. In March, Donerail said it had withdrawn the offer.

Turtle Beach has recently received a new interest in the acquisition, according to sources, and has been in talks with at least two strategic buyers. The company expects to have contacted more than 50 parties as part of the sale process, said one source.

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