ZAGG Inc Acquires Gear4, the UK’s No. 1 Smartphone Case Brand, From STRAX
November 30 2018 - 9:01AM
ZAGG Inc (NASDAQ:ZAGG) today announced it has acquired Gear4, the
U.K.’s No. 1 smartphone case brand1, with growing global
distribution, from STRAX AB (STO:STRAX) for U.S. $40 million, the
equivalent of 1X 2018 projected sales. Accounting for 23 percent
market share in the U.K. and having experienced significant growth
in North America this year, Gear4’s extensive range of impact
absorbing smartphone cases covers all leading handsets. Gear4’s
cases exclusively feature D3O® technology, the thinnest and most
advanced impact and shock absorbing material currently used in
professional sports, industrial and military equipment
applications. ZAGG Inc is a global leader and innovator in
accessories and technologies that empower mobile lifestyles through
its award-winning product portfolio that includes screen
protection, power management, mobile keyboards, and personal audio.
With more than 1.9 billion smartphones predicted to ship2 during
2018, the Gear4 acquisition complements the ZAGG Inc product
portfolio and provides credible access of a growing brand to a
large category driven by demand for mobile devices globally. Gear4
will benefit from the acquisition by leveraging ZAGG Inc’s
expansive global distribution footprint to drive increased sales
and profitability. In addition to the license for D3O technology,
ZAGG Inc will acquire the Gear4 corporate headquarters located in
Maidenhead, England, and retain the services of its talented
employees located in the U.S., Canada, the U.K., and Hong Kong.
“As a leading mobile lifestyle company, this transaction
underscores our commitment to expanding our product offering in
order to better meet the needs of today’s smartphone consumer,”
said Chris Ahern, CEO of ZAGG Inc. “Gear4 and D3O provide a
robust intellectual property portfolio in protective case
technology for mobile devices, which we believe is a significant
differentiator especially given the trend of increasingly costly
handsets. Thanks to its cutting-edge protective case designs,
Gear4 is thriving while many other case brands consolidate. For
multiple reasons, we are excited to welcome Gear4 to the ZAGG
family of brands. Most importantly, the business provides us with
meaningful growth opportunities as we build toward our long-term
goal of $1 billion in annual revenue and is immediately accretive
to margins.”
D3O impact absorbing technology is trusted worldwide in U.S.
military combat uniforms and protective gear worn by professional
athletes. In its raw state, D3O materials flow freely when moved
slowly, but on shock, lock together to absorb and disperse energy
before instantly returning to their flexible state.
Latham & Watkins, LLP acted as legal counsel to ZAGG in the
transaction. LOGOS acted as legal counsel to STRAX in the
transaction.
About ZAGG IncZAGG Inc (NASDAQ:ZAGG) is a
global leader in accessories and technologies that empower mobile
lifestyles. The Company has an award-winning product portfolio that
includes screen protection, power management solutions, mobile
keyboards, and personal audio sold under the InvisibleShield®,
mophie®, ZAGG®, BRAVEN®, and IFROGZ® brands. ZAGG Inc has
operations in the United States, Ireland, and China. For more
information, please visit the company’s websites
at www.zagg.com, and www.mophie.com.
About Gear4Founded in 2006, Gear4 is the No. 1
impact protection case brand in the U.K. In 2015, Gear4 partnered
with D3O to create world-leading impact protection products for
consumer electronics. Now 12 years old and established in over 40
countries, Gear4 has a proven track record of creating
world-leading products that have satisfied millions of consumers
worldwide. Working to the impeccable standards of British
engineering and innovation, pride themselves on constantly
delivering unique, well-designed products that protect your most
precious devices. For more information, please visit the company’s
website at www.Gear4.com.
1Source: GFK, STRAX GfK Cases, Sept. 2018; No. 1 case brand by
sales volume2Source: IDC, Worldwide Mobile Phone Forecast,
2018-2022, Mar 2018 - Market Forecast - Doc # US43624018All
trademarks and trade names are those of their respective owners
Media Contact
ZAGG IncJeff DuBois801-506-7336jeff.dubois@ZAGG.com
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