It was noted that the two companies have signed an agreement where both of their respective assets will be combined and ZAGG will have to dish out at least $100 million when the deal goes through. However, Zagg may have to pay even more if the earnings go past $100 million during the period of April 1, 2016 to March 31, 2017. Last year alone, the two companies combined earned $470 million in net sales. Based on last year’s numbers, it is likely ZAGG will have to pay more at closing.
Apparently ZAGG is looking to widen its global distribution network and obtain access to Mophie’s production resources in China, which is their goal from acquiring Mophie to begin with. Both companies are known for making iPhone accessories and ironically, both accessory makers look to protect the iPhone from any damages and Mophie cases are widely known for its ability to charge the device as well. According to CEO and President of ZAGG, Randy Hales,
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.