Skullcandy Inc (NASDAQ:SKUL) shares were up 23.08% to $5.76 on Friday despite sharp declines in global equities. As it turns out, the company received a takeover bid from global consumer technology platform Incipio Group to pay $5.75 per share of the company’s common stock, equating to a total of $177 million for the buyout deal. The company has a market cap of $202.94 million at 28.63 million shares outstanding.
Skullcandy is a company with product offerings in two categoeries: audio and gaming. It creates audio experiences through its Skullcandy and Astro Gaming brands, operating in both domestic and international markets. Its international segment includes Skullcandy product sales to customers in Europe, Asia, Canada Mexico, and all other geographic areas outside the United States.
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,” said Skullcandy CEO Hoby Darling.
Incipio Group plans to finance the buyout deal by using only cash. However, another firm named Mill Road Capital was also determined to acquire Skullcandy. This firm already has a 9.8% stake in the company and has disclosed its intention to purchase common stocks at $6.05 per share, significantly higher than Incipio Group’s offer.
Incipio Group is known more for its phone cases and battery packs so its acquisition of Skullcandy could expand its reach in the mobile accessories arena.
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,” explained Incipio founder and CEO Andy Fathollahi.
The deal is expected to close in the third quarter of this year, pending shareholder and regulatory approval.
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