Zagg buys battery case maker Mophie for $100M

Posted:
in General Discussion edited February 2016
Zagg, best known for its InvisibleShield line of protective display coverings, on Tuesday announced plans to purchase iPhone battery case maker Mophie in a deal worth at least $100 million.




Both companies signed a definitive agreement to combine their respective assets in a merger that will see Zagg pay out $100 million at closing. That sum could grow if adjusted earnings exceed the $100 million mark during an earn-out period from April 1, 2016 to March 31, 2017.

"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 CEO 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."

As part of the deal, Zagg hopes to gain access to Mophie's production resources in China, improve collective brand strength and widen its global distribution network. The merger should prove lucrative for both companies, as each has cut out a niche in their respective accessory submarkets. Zagg plays to device protection and dabbles in peripherals like keyboards and audio equipment, while Mophie is an established manufacturer of portable batteries and battery cases.

Last year, Zagg and Mophie saw combined net sales of about $470 million.

Comments

  • Reply 1 of 9
    steviestevie Posts: 956member
    Apple could buy both of them with petty cash.
  • Reply 2 of 9
    sirlance99sirlance99 Posts: 1,142member
    stevie said:
    Apple could buy both of them with petty cash.
    Let's see you start an accessory company and make over $100M. 
    williamlondon
  • Reply 3 of 9
    latifbplatifbp Posts: 544member
    ZAGG had $100 million?
    stevie1983redgeminipaaylk
  • Reply 4 of 9
    calicali Posts: 3,495member
    Sometimes I see these "small" purchases and think Apple should be the one buying them all. It would be like buying a piece of gum for them.

    But realistically it may not make sense all the time, but the risk is surely low for Apple.
  • Reply 5 of 9
    19831983 Posts: 1,158member
    cali said:
    Sometimes I see these "small" purchases and think Apple should be the one buying them all. It would be like buying a piece of gum for them.

    But realistically it may not make sense all the time, but the risk is surely low for Apple.
    What possible need would Apple have for Mophie and Zagg? Makes no sense at all.
    stevie
  • Reply 6 of 9
    Bought a Zagg Folio case for my iPad Air, been extremely pleased with it so far (I grab this instead of my 11" MBA to throw in my bag I love it so much!). I've been waiting to see what they create to take advantage of the iPad Pro's Smart Connector (purportedly soon to be available on the new Air too) in a Folio keyboard/case, but nothing so far, just a Bluetooth connected option. Glad to see they have no plans to remain stationary, will be interesting to see what moves like this merger enable them to turn out in the future.
  • Reply 7 of 9
    And this is another oddly timed deal. Apple just started selling their own "hunchback" battery accessory for iPhone.
  • Reply 8 of 9
    I wouldn't call out Zagg's screen protectors as a benchmark for quality. Their glass screen protectors are complete garbage, and their "warranty" return process means you're paying 50% of the cost of a new one just to get a "free" replacement. I've had MUCH better luck with cheap, $5 glass screen protectors from 5 Below. At least those don't scratch and crack around the edges within the first 2 months with no drops or hard impacts. 
    aylkeyepod68
  • Reply 9 of 9
    I worked at zagg for over four years, the product quality is complete garbage, you have to continually pay for "installation" on their so called lifetime warranty.  They were constantly trying to get their products in to the Apple stores and were always rejected because of poor quality.  You can get much better screen protectors online for around $2, much better than zagg's overpriced $40 shields.  I doubt you will ever see a zagg engineered product in the Apple store so they had to buy a company that's already in the Apple store.
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