ZAGG Mobile Accessories Empire Expands Into Battery Cases With $100 Million Mophie Purchase
A major move is taking place in the mobile accessories market. ZAGG, best known for its premium line of screen protectors, inked a definitive agreement to purchase Mophie, a major player in the battery case segment. The deal is for $100 million at closing, plus a 12-month earn-out based on how Mophie performs from April 1, 2016 to March 31, 2017.
This is one of those transactions that makes a lot of sense. ZAGG and Mophie are each established in different but related mobile accessory categories, and combining the two creates a single infrastructure with a more diverse product line, one that's comprised of reputable products. The acquisition also brings together each company's engineering and manufacturing resources, and at a price that is in the millions, not billions of dollars.
"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. "We see numerous opportunities to drive revenue growth and increase profitability by leveraging the strengths of both organizations to strengthen product development, improve brand presence, and expand distribution."
The mobile accessory market is both crowded and fierce. ZAGG and Mophie aren't known for undercutting the competition on price, and instead concentrate their respective efforts on higher quality solutions with a premium attached. That isn't likely to change, though comments from executives at both sides suggest that the acquisition could lead to more flexible pricing.
“ZAGG and Mophie represent two companies with strong brands and shared values. The rationale for the merger is powerful and the combination enhances each company’s growth strategy while offering a truly compelling value proposition. Together, we intend to build on our market leadership to deliver great products, advance the brand strength, and increase our global presence in mobile accessories," said Daniel Huang, CEO of Mophie.
Huang and Mophie COO Shawn Dougherty will continue in their current roles after the transaction is complete, while Hale will oversee the entire operation.
This is one of those transactions that makes a lot of sense. ZAGG and Mophie are each established in different but related mobile accessory categories, and combining the two creates a single infrastructure with a more diverse product line, one that's comprised of reputable products. The acquisition also brings together each company's engineering and manufacturing resources, and at a price that is in the millions, not billions of dollars.
"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. "We see numerous opportunities to drive revenue growth and increase profitability by leveraging the strengths of both organizations to strengthen product development, improve brand presence, and expand distribution."
The mobile accessory market is both crowded and fierce. ZAGG and Mophie aren't known for undercutting the competition on price, and instead concentrate their respective efforts on higher quality solutions with a premium attached. That isn't likely to change, though comments from executives at both sides suggest that the acquisition could lead to more flexible pricing.
“ZAGG and Mophie represent two companies with strong brands and shared values. The rationale for the merger is powerful and the combination enhances each company’s growth strategy while offering a truly compelling value proposition. Together, we intend to build on our market leadership to deliver great products, advance the brand strength, and increase our global presence in mobile accessories," said Daniel Huang, CEO of Mophie.
Huang and Mophie COO Shawn Dougherty will continue in their current roles after the transaction is complete, while Hale will oversee the entire operation.
