ZAGG Acquires Mophie and Smartphones Everywhere Rejoice

I’m a big fan of ZAGG and their ever-growing assortment of offerings to enhance your mobile lifestyle. And I’ve been using mophie battery cases since the company first appeared on the scene. Now ZAGG is acquiring mophie and extending their reach as a mobile accessory giant. The deal makes perfect sense and will, I suspect, be good for consumers too.

ZAGG Acquires mophie and Smartphones Everywhere Rejoice

ZAGG first came on the scene with their innovative, clear protective films for smartphones. Over the years, they have expanded their screen-protection offerings and extended their brand to include a wide assortment of battery cases, external batteries, screen protection, and tablet keyboards. (A quick search of the site will quickly show just how much I/we love ZAGG’s products!)

ZAGG Acquires mophie and Smartphones Everywhere Rejoice

mophie, however, is the leader when it comes to battery cases, they pretty much invented the battery case market. And like ZAGG, they have expanded their offerings over the years. Now the two have announced the signing of a definitive merger agreement. Under it, ZAGG will acquire mophie. The transaction will “leverage the unique strengths of two industry leaders in the mobile accessories sector to create a business with greater product diversification and improved operational capabilities.” In the process, this merger will create a mobile accessories company with combined 2015 net sales of approximately $470 million. In the press release on the merger, ZAGG writes that, “[The] new entity is expected to enhance long-term enterprise value through revenue growth, strengthened product development, and expanded distribution.”

ZAGG Acquires mophie and Smartphones Everywhere Rejoice

This isn’t the first acquisition ZAGG has made. Not long ago they acquired iFrogz. Thus far they have kept the brand as a separate name entity but you will now find iFrogz products under the ZAGG name and website address.

As Randy Hales, President and Chief Executive Officer of ZAGG notes:

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.

Daniel Huang, mophie Chief Executive Officer adds:

ZAGG and mophie represent two companies with strong brands and shared values. The rationale for the merger is powerful and the combination enhances each company’s growth strategy while offering a truly compelling value proposition. Together, we intend to build on our market leadership to deliver great products, advance the brand strength, and increase our global presence in mobile accessories.

Under the terms of this deal ZAGG will pay $100 million at closing, plus the amount by which 5X Adjusted EBITDA exceeds $100 million over a 12-month earn-out period. The purchase price at closing will be funded with cash and debt.

This is one of those mergers that makes sense. I’ve loved the way ZAGG has extended their product offerings in recent years and this will simply allow them to innovate when it comes to battery cases at a fast rate. I’ll be anxious to see what the new powerhouse brings to market in the coming years.

As an Amazon Associate, we earn from qualifying purchases. If you are shopping on Amazon anyway, buying from our links gives Gear Diary a small commission.

About the Author

Dan Cohen
Having a father who was heavily involved in early laser and fiber-optical research, Dan grew up surrounded by technology and gadgets. Dan’s father brought home one of the very first video games when he was young and Dan remembers seeing a “pre-release” touchtone phone. (When he asked his father what the “#” and “*” buttons were his dad said, “Some day, far in the future, we’ll have some use for them.”) Technology seemed to be in Dan’s blood but at some point he took a different path and ended up in the clergy. His passion for technology and gadgets never left him. Dan is married to Raina Goldberg who is also an avid user of Apple products. They live in New Jersey with their golden doodle Nava.