EagleTree Capital Looks to Sell a 7.77% Stake in Corsair – The Esports Observer

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Computer hardware and peripherals company Corsair Gaming (NasdaqGS: CRSR) filed a preliminary S-1 form with the Securities and Exchange Commission (SEC) regarding the sale of 7.5M shares of its common stock. According to the document, the offering consists solely of shares offered by selling stockholders. Therefore Corsair will receive no proceeds from the offering. Until the offering is finalized, it is still subject to change.

The current preliminary S-1 form does not disclose the public offering price, which is likely to be in the ballpark of Corsair’s current per share market price. Corsair’s last reported stock price on the Nasdaq Global Select Market on Jan. 15 was $38.13 USD per share. Following the preliminary offering prospectus’ publication on Jan. 19, Corsair’s stock price dropped below $36 around noon ET on Wednesday. 

Corsair’s underwriters for the public offering include Goldman Sachs, Barclays Capital, Credit Suisse Securities, and six additional underwriters. As part of the underwriting agreement, the underwriters have the option to purchase up to an additional 1,125,000 shares from certain of the selling stockholders at the public offering price less the underwriting discount.

If the selling stockholders, a group made up of Corsair’s majority owner EagleTree Capital and its co-managing partners and Corsair leadership, and the offering’s underwriters agree on a public offering price close to Corsair’s current stock price, the selling stockholders could raise roughly $250M to $280M in gross proceeds. 

Through several of its subsidiaries, EagleTree, which bought a majority share in Corsair in July 2017 in a deal valued at $525M, and its co-managing partners George Majoros and Anup Bagaria are offering 7,135,000 of Corsair’s common stock. Following the completion of this public offering, EagleTree will continue to be Corsair’s majority owner while reducing its stake in the company from 76.32% to 68.55%. 

Additionally, Corsair’s CEO Andrew Paul offers 250K, Corsair’s President and COO Thi La 100K, and Corsair’s Vice President Finance, Investor Relations Ronald van Veen 15K of the company’s common stock.

In September last year, Corsair completed its initial public offering on the Nasdaq Global Select Market and raised $118.6M before expenses in the offering. As part of the IPO process, EagleTree sold more than 6.5M common stock of Corsair at a per-share price of $17.

Once Corsair’s latest public offering is completed, EagleTree will have liquidated Corsair’s stock very roughly worth more than $350M and could secure a complete return on investment on its initial investment in Corsair in a third public offering of the company’s common stock while remaining its majority stockholder.


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