According to a press release from Zagg, its acquisition of mophie will allow it to be the market share leader when it comes to battery cases, external batteries, screen protection, and tablet keyboards. Zagg has paid $100 million at deal closing for mophie, with a caveat that additional money may be paid out based on earnings over a 12 month 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 Chief Executive Officer 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.”
Daniel Huang, mophie Chief Executive Officer, said, “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.”
Zagg plans to retain the mophie brand, continuing to sell the company’s products under the familiar mophie name. While the battery case maker will retain its identity, messaging, and strategy, cross-branded products, perhaps a Zagg tablet keyboard with a built-in battery pack, are future possibilities.