This afternoon ZAGG announced that they’d be acquiring Mophie, bringing the battery giant into the accessories giant thusly. ZAGG will be holding a conference call for investors this evening at 6:30 PM Eastern Time, at which point ZAGG will explain the terms of this merger. ZAGG suggests that this combination of companies will create one which had a combined net sales of “approximately $470 million” in the year 2015.
The Brand ZAGG you’ll know for their hardcore or otherwise especially robust set of cases for mobile devices. The brand Mophie you’ll know for their battery cases, creating double the uptime for many devices as they add a layer of protection to said devices in the process.
According to the two companies, this merger will display cross-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.”
ZAGG suggests that they’ve agreed to pay 100 million at closing, plus the amount by which 5X Adjusted EBITDA exceeds $100 million over a 12-month earn-out period. This earn-out period will start on the 1st of April and will run until March 31st of next year, and no, this is not an April Fools’ Day joke.
Once the closing of the transaction takes place, Daniel Huang (CEO) and Shawn Dougherty (COO) (both of Mophie) will continue their current roles and report directly to Randy Hales, CEO of ZAGG.