Zagg, Mobile-Accessories Specialist, to Be Acquired by Evercel Group

Zagg, the maker of mobile-device accessories, agrees to be acquired by Evercel for $4.45 a share cash.
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Zagg  (ZAGG) - Get Report, the producer of tech and accessories for mobile devices, said on Friday that it agreed to be acquired by an investor group led by Evercel EVRC for $4.45 a share cash.

Holders of Zagg also would receive an additional 25 cents a share if the company's Paycheck Protection Program loan is forgiven.

Shares of the Salt Lake City company at last check were up 5.9% at $4.24. Zagg stock traded at $9 in mid-February, then fell to just above $2 in mid-March. 

Evercel, the New York investment holding company, was up 13% at $2.60. 

The companies hope to close the deal in the first quarter, subject to conditions including antitrust clearance, they said in a statement.

In November, the company reported its third-quarter 2020 results, posting earnings of 21 cents a share, down 30% from 30 cents in the year-earlier quarter. Sales declined 21% to $115.5 million from $146.5 million.

The sales drop stemmed from retail-store closures and related reductions in demand during the pandemic, plus the delayed launch of Apple's  (AAPL) - Get Report newest iPhones into the early fourth quarter, Zagg said.

"We have taken important steps to emerge from the pandemic a stronger company starting with discontinuing certain low margin products and categories, and simplifying other core lines of business,” Chief Executive Chris Ahearn had said in a statement accompanying the Nov. 9 earnings report.

“We have also made progress sharpening our top-line focus and advancing our digital wellness strategies. I am confident in the long-term course we have set for Zagg and believe we are on track to generate enhanced profitability and increased value for our shareholders."