In an announcement made on their blog, Zagg has agreed to purchase battery case manufacture Mophie for at least $100 million.
ZAGG Inc (NASDAQ:ZAGG) and mophie inc. (“mophie”) announced today the signing of a definitive merger agreement under which ZAGG will acquire mophie. The transaction will leverage the unique strengths of two industry leaders in the mobile accessories sector to create a business with greater product diversification and improved operational capabilities.
The terms of the deal mean that the agreed upon price of Mophie is $100 million plus a 5-times EBITDA increase based on how Mophie performs from April 1, 2016 through March 31, 2017.
Mophie has been widely regarded as one of the best when it comes to slip-style cases that have batteries built into them. The battery built into these cases allows you to use it as the battery for your phone or to use as a
charger for your main battery. They have an elegant design and have been very popular with iPhone users.
Daniel Huang, mophie Chief Executive Officer, said, “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.”
The deal brings Zagg up to a premier manufacture of accessories for a wide range of devices, adding to an already impressive portfolio. How ultimately this acquisition will be felt by consumers remains to be seen but chances are, given Zagg really doesn’t have a competitive product, it will be minimal.
Based on the press release, it appears for now it will be business as normal for both companies while the M&A process continues in the background. Zagg is a public company while Mophie is a privately held company.