Corsair continues Fanatec pursuit, but “cannot provide assurances”

Corsair’s net revenue plummeted 19.7 per cent year on year in its Q2 2024 filings, resulting in an operating loss of $1.2 million.

Perhaps more pertinent for sim racers are comments by the US gaming product manufacturer relating to its attempts at a Fanatec takeover.

Following a move to purchase the ailing sim racing equipment producer, the initial proposal looks to be on ice.

Fanatec’s parent company Endor AG had initiated the German Act of Stabilisation and Restructuring of Companies (StaRUG), which could have opened the door to a Corsair purchase without, controversially, paying out existing shareholders.

However, a combination of factors led to the cancellation of (StaRUG), namely the calling of a general meeting by erstwhile CEO Thomas Jackermeier and the loaning bank’s refusal to provide further cash.

It meant Endor AG is sat on liabilities of “more than” €95 million, of which €70 million is owed to the banks. Consequently, it declared insolvency.

The Management Board regrets that the negotiations with the strategic investor Corsair, which were already at an advanced stage, could not be finalised,” said Endor AG.

“The Management Board assumes that Corsair is still interested in acquiring Endor AG.

Now, the Californian outfit’s financial report makes it clear that while its interest remains undimmed, the company is far less bullish than it was three months ago.

“We remain interested in the sim racing brand Fanatec, owned by Endor AG,” it reads.

“Although we were disappointed to see the company file for insolvency, we intend to continue exploring a potential acquisition.

“Such acquisition would likely be within the framework of the pending insolvency proceedings, and as a result, we cannot provide any assurance our bid will be successful.”

IP acting as loan securities

Part of the initial conversation involved multiple loans to Endor AG from Corsair to keep the company operational and (at the time) avoid insolvency, including €4 million in July.

As collateral on those loans, Endor AG provided Corsair with intellectual property, believed to consist of product designs and the brand name ‘Fanatec’.

Should another party successfully purchase Fanatec, the American gaming equipment producer has confirmed to Traxion that part of the proceeds to buy the company would pay back the Corsair loans. In this instance, the IP would return to Endor under its new ownership.