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.