Take-Two Sells Joytech to Mad Catz for $3.7M

By Carlos Bergfeld, Sep 07, 2007 10:07am PDT New York-based game giant Take-Two sold its gaming accessories subsidiary Joytech to competing peripheral manufacturer Mad Catz, Take-Two announced today. The sale is part of the new Take-Two management team's plan to sell off unessential businesses, as the move returns the whole of Take-Two's interests to the software realm.

The acquisition cost Mad Catz $3.7 million, according to a release from the San Diego-headquartered accessories provider. "Joytech's strong presence in Europe and growing presence in North America are expected to complement our current operations and further enhance our worldwide distribution network enabling Mad Catz to more efficiently deliver a larger portfolio of innovative gaming accessories to our customers worldwide," Mad Catz CEO Darren Richardson said in the statement.

According to the announcement from Take-Two, Mad Catz will acquire "substantially all of our Joytech employees in the U.S. and U.K." The Mad Catz statement estimates an additional $10 million in annual revenue resulting from the purchase, with the enhanced revenue stream bolstering Mad Catz operations within a year's time. But for Take-Two, the sale "is not expected to be material to Take-Two's financial results."

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