Two of the biggest names in the mobile accessory business is joining forces.
Zagg and Mophie have just announced that they have reached a merger agreement whereby the former effectively acquires the latter. According to the companies’ joint press release, the deal will have Zagg paying $100 million at deal closing, with perhaps more to be paid out over a 12-month period depending on Mophie’s earnings.
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. It also offers keyboard, case and audio products under the iFrogz brand and variations of its namesake Zagg brand.
Mophie, for its part, is based in Orange County, California, and is largely recognized for its portable power products, including so-called “juice packs” for iPhones. (Apple apparently designed its iPhone 6s battery case with a huge bulge in the center so as not to infringe on Mophie’s design patents.)
According to their press release, the two companies expect to reap the following benefits from their merger:
Enhanced Capabilities for Profitable Growth: The combination will create an improved technology platform, strengthened engineering and manufacturing resources in China, along with a global distribution network with facilities in the U.S., Europe, and Asia.
Best in Class Product Development: Retail customers and mobile consumers will benefit from the alignment of strong product development teams that are focused on delivering Creative Product Solutions.
Improved Brand Strength: The brand strength of the combined companies will be leveraged to increase consumer awareness through an expanded global platform and focus on always being the Preferred Brand.
Expanded Global Distribution Channels: The combined entity intends to further increase its Targeted Global Distribution through a broader retail presence and new product introductions.
Improved Financial Profile: The combination is expected to increase net sales and adjusted EBITDA with a focus on leveraging operational efficiencies and performance.
We here at AppAdvice are fans of both Zagg and Mophie, and we hope that both companies will continue to come up with more innovative mobile accessory products, probably including cross-branded ones.