Skullcandy has today revealed it has approved an offer from Incipio to purchase the company for $177 million.
This is in order to help take the company private after stock prices fallen as revenue growth slowed, and comes after Incipio completed the purchase of Incase and Braven recently, adding to their growing line of accessory brands.
Andy Fathollahi, CEO and Founder of Incipio, said the following about the deal:
“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, Inc. President and CEO added:
“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 acquisition has already been approved by Skullcandy’s and Incipio’s boards of directors and is expected to close in Q3 of 2016. A representative from Incipio also told The Verge that the Skullcandy brand will “remain intact” after the closing of the deal, however, Skullcandy will be making more products that they normally wouldn’t as a result.
Via: The Verge
Source: Global Newswire