Information on the Target

Caseking Group, founded in 2003 and headquartered in Berlin, has emerged as a premier European supplier of PC gaming products, eSports gear, and technology accessories. Established by Kay Kostadinov and Toni Sonn, the company began as an online retailer and has since evolved into a significant player in the high-performance computer market. Currently employing approximately 400 individuals, Caseking operates across multiple regions, including Germany, Great Britain, Scandinavia, Southern and Eastern Europe, and Taiwan. With a logistics network comprising six depots, it processes over 540,000 orders yearly, shipping around 4 million products worldwide. The extensive product portfolio features exclusive brands alongside licensed and third-party merchandise.

Under the stewardship of Equistone Partners Europe since its acquisition in March 2014, Caseking has demonstrated remarkable financial growth. The company’s turnover surged from €96 million in FY 2013/14 to €239 million in FY 2017/18, driven by strategic acquisitions and robust organic growth. Notably, the prior acquisition of the British company Overclockers, along with strategic entries into Hungary and Portugal, alongside bolt-on acquisitions in Sweden and Finland, reinforced Caseking’s position in key European markets.

Industry Overview

The European gaming market has experienced exponential growth, fueled by increasing consumer interest in gaming and eSports. With a surge in both casual and competitive gamers, the demand for high-performance gaming products and accessories has intensified. Companies like Caseking are positioned at the forefront of this trend, catering to a burgeoning audience that spans various demographics.

Germany, in particular, boasts one of the largest gaming markets in Europe. The country’s robust infrastructure, technical expertise, and strong gaming community contribute significantly to its thriving market. E-commerce continues to play a pivotal role in the distribution of gaming products, with online retailers gaining a competitive edge over traditional brick-and-mortar stores due to the convenience and variety they offer.

Additionally, the eSports sector in Europe has gained substantial traction, with increasing investment from brands and sponsors. This growth has encouraged gaming companies to refine their product offerings to meet the expectations of eSports enthusiasts, creating a lucrative opportunity for suppliers like Caseking.

As the demand for gaming hardware and accessories surges, the competitive landscape has also evolved. Companies must prioritize innovation and customer engagement to maintain their market positions. With strategic acquisitions and a focus on brand credibility within the gaming community, firms in the industry aim to capitalize on this dynamic environment.

The Rationale Behind the Deal

The sale of a majority stake in Caseking to funds advised by Gilde Buy Out Partners aligns with Equistone's strategy of providing growth capital to promising businesses. The acquisition allows Gilde to leverage Caseking's established market presence and growth trajectory, particularly in light of the flourishing gaming sector.

Equistone’s investment approach emphasized supporting Caseking's international expansion through targeted acquisitions, thereby enhancing its market leadership in critical regions. With Caseking's solid track record in organic growth and successful market entries, this transition is poised to unlock further opportunities as the company continues its trajectory in the gaming industry.

Information About the Investor

Equistone Partners Europe is one of the leading mid-market private equity investors in Europe, with a proven track record of identifying and nurturing businesses with high growth potential. The firm takes an active approach, partnering with management teams to drive sustainable growth and value creation.

Equistone has a deep understanding of the market dynamics within the gaming and technology sectors, having successfully supported Caseking's strategic initiatives. This experience positions them as a valuable partner in transitioning Caseking to its new ownership, ensuring a seamless handover as the company embarks on its next growth phase.

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This transaction could be viewed as a significant opportunity for both the buyer and the seller. For Equistone, the successful realization of growth in Caseking demonstrates their effective investment strategy during the ownership period. They have not only enhanced the company’s market standing but have also maximized returns through strategic exits.

From Gilde's perspective, acquiring Caseking presents an attractive opportunity to capitalize on the momentum of the gaming industry. Given the company's strong growth trajectory and well-established brand, Gilde can leverage its expertise to further enhance Caseking’s operations and market presence.

Furthermore, with Caseking’s international operations and diverse product offerings, the potential for continued growth remains significant. As the gaming market evolves, the company is well-positioned to adapt and thrive, making this investment prudent in a rapidly growing sector.

In conclusion, this deal reflects a natural progression and an opportune moment for Caseking, poised to embrace new challenges and opportunities under Gilde’s guidance while continuing to strengthen its market leadership within the gaming industry.

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