The terms of the deal state that the company has agreed to buy Mophie for $100 million, plus an additional amount based on how successful the merger is over the twelve month “earn-out” period from April 2016. If you’re unfamiliar with these companies, they both make mobile accessories.
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Combined, the two companies generated net sales of approximately $470 million past year. It also offers keyboard, case and audio products under the iFrogz brand and variations of its namesake Zagg brand.
While Mophie hit its stride with the battery cases, it got its start as a scrappy little maker of iPod accessories.
Mophie launched its first Juice Pack for the Apple iPhone 3G/ 3GS in 2008.
Headquartered in South Salt Lake, Utah, Zagg has for over a decade been known mainly for its line of protective coverings for mobile devices sold under the brand name InvisibleShield.
Zagg believes the synergies of both companies will lead to “numerous opportunities” for boosting revenue due to the company’s respective strengths and distribution networks. Hale’s sentiments were similarly echoed by Mophie’s CEO, Daniel Huang.
“This strategic combination of two industry innovators with complementary product, brand and distribution platforms will enable us to deliver increased value for our customers and shareholders”, said Randy Hales, President and Chief Executive Officer of ZAGG. The rationale for the merger is powerful and the combination enhances each company’s growth strategy while offering a truly compelling value proposition.
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Zagg and Mophie are merging in a bid to dominate the mobile accessories market.
