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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.

Zagg  (ZAGG) - Get ZAGG Inc 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. 

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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 Apple Inc. 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."