Accessory maker ZAGG announced today that it has bought out another popular accessory maker known for its iPhone battery cases, Mophie, for $100 Million.
iPhone users have likely come across the name ZAGG at some point of owning their iOS device. But for those who have never heard of it, the company is best known for its InvisibleShield screen protectors. The popular company not only offers plastic screen protectors but glass ones as well. ZAGG announced on Monday that they plan on acquiring popular iPhone battery case maker Mophie for $100 million USD or more.
It was noted that the two companies have signed an agreement where both of their respective assets will be combined and ZAGG will have to dish out at least $100 million when the deal goes through. However, Zagg may have to pay even more if the earnings go past $100 million during the period of April 1, 2016 to March 31, 2017. Last year alone, the two companies combined earned $470 million in net sales. Based on last year’s numbers, it is likely ZAGG will have to pay more at closing.
Apparently ZAGG is looking to widen its global distribution network and obtain access to Mophie’s production resources in China, which is their goal from acquiring Mophie to begin with. Both companies are known for making iPhone accessories and ironically, both accessory makers look to protect the iPhone from any damages and Mophie cases are widely known for its ability to charge the device as well. According to CEO and President of ZAGG, Randy Hales,
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. 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.