HIGHLIGHTS
- The deal is expected to close in Q3 2016
- The merger will provide new licensing opportunities
- The transaction has been approved by both firms’ boards
Incipio and Skullcandy announced on Friday the two companies would be merging, with the California-based consumer technology firm best known for its mobile accessories agreeing to acquire Utah-based headphone maker in a cash deal worth roughly $177 million.
Speaking on the merger agreement, Andy Fathollahi, CEO and Founder of Incipio, stated in a joint statement, “We have long admired Skullcandy’s culture of innovation and ability to create pioneering audio experiences with quality and style. Skullcandy and Astro amplify our dynamic mix of products and brands, while bolstering the technical and operational capabilities that serve as the foundation of our platform. The team at Skullcandy and its international presence will also allow us to accelerate the global impact of our multi-brand offense.”
Hoby Darling, Skullcandy President and CEO, also commented, “We are excited to be joining forces with Incipio Group as we believe it’s in the best interests of Skullcandy and our shareholders. The combination of our two companies allows us to better serve our consumers and retailers with focused, best-in-class products in multiple categories. We share a common culture, vision and commitment to driving innovation and this merger will allow our two teams to amplify their efforts going forward. Also, importantly, we remain deeply committed to our teams, retail partners, ambassadors and community. Those things are all part of our DNA as a company born on the mountains in Park City for Skullcandy and in the technology and gaming hub of San Francisco for Astro.”
The companies added that the merger deal has been approved by Skullcandy’s and Incipio’s boards of directors, and that it is expected to close in the third quarter of 2016, subject to regulatory approvals.
The statement adds that Skullcandy from July 23 this year has to cease existing discussions with third parties regarding alternative proposals. Speaking to The Verge, Incipio said the Skullcandy brand will continue. It’s unclear however how exactly Incipio plans to use the brand, with the statement just adding that the deal will create new licensing opportunities with future and current licensing partners, the ability to together drive scale and efficiencies, and provide retailers with a single firm for a wide range of product categories.
Source: gadgets.ndtv.com
