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Lygo ready to double its staff
12:28pm Thursday 18th October 2012 in Business
A COMPUTER games accessories firm based in the North- East bought by a US audio company is to double its staff as it becomes the US firm’s European distribution arm.
Darlington-based Lygo International has been acquired for an undisclosed sum by game audio equipment manufacturer Turtle Beach, which is backed by private equity firm Stripes Group.
The North-East firm, set up in 1999, became the US audio firm’s exclusive distributor and support centre for its products in the UK and Ireland in January last year.
The deal means the firm’s 25-strong Darlington workforce is expected to double over the next few years.
Paul Crooks, Lygo’s managing director, said the deal was good news for the region.
“It is a huge vote of confidence in the people of Darlington,”
he said. “We started distributing for Turtle Beach after we approached them and had a meeting in New York about working with them.
Our relationship just went from there. They have chosen us to be their European hub, which is huge. It is really good news for the region.”
From its headquarters in Darlington’s Lingfield Point, Lygo runs its main logistical operation, as well as warehousing and customer support centre. The firm, which distributes to Argos, Game and Amazon, also has a satellite office in Southampton to handle its sales operations.
Juergen Stark, chief executive officer of Turtle Beach, said: “The acquisition of Lygo helps extend Turtle Beach’s global reach and expands the brand while better supporting consumers, developers, publishers and our European distribution partners.
“In Lygo we have found a tremendous partner and valuable internal strengths as we look to evolve our international presence.”
Shawn Bone of BTG Corporate Finance, in Newcastle, led the transaction on behalf of Lygo shareholders Paul Crooks and Ian Bourne, who will remain part of the business.
Tom Fitzpatrick of Dickinson Dees, who also advised on the deal, said it demonstrated overseas private equity firms were increasingly looking to the UK to invest.
He said: “Over the past year or so, we have been involved in an increasing number of strategic cross-border deals, most of which involve plans for increased investment in the region, which is all very encouraging.”