Braven, Gear 4 Morphie Gear Maker, Tipped To Be Sold As Share Value Crashes
The manufacturer of Braven sound gear, Mophie battery and Zagg cases is potentially up for sale according to sources.
Zagg Inc a U.S. manufacturer of consumer electronic goods sold by the likes of JB Hi Fi and Harvey Norman is facing a potential sale according to Reuters after struggling to deliver growth, their shares have fallen by 75% since November 2017.
In second quarter 2019 results released today, the company announced a loss of US$5.3 million and an US$11.8 million drop in net sales on the back of a decrease in sales of screen protectors and Mophie power banks.
According to sources the company has been approached by private equity firms, and is working with a financial adviser to decide on its next steps, the sources said. No deal is immediately imminent and there is no certainty that any transaction will occur, the sources added.
In Australia Zagg products are distributed by Cellnet.
The sources asked not to be identified because the deliberations are confidential, Zagg representatives did not respond to requests from Reuters for comment.
Zagg shares jumped 21% to $7.28 on the news, giving the company a market capitalization of around $210 million.
Among the other brands sold by Zagg is Gear4 covers.
Last month, Zagg announced the resignation of its president, Brian Stech, the company has been led since last year by its chief executive, Chris Ahern.