At CTIA, notable case maker Otterbox announced that it has closed an acquisition deal for competing iPhone case maker LifeProof. Both companies offer similar cases with a focus on durability.
During a question and answer session, executives from both companies revealed that the deal was 120 days in the making.While LifeProof will be embedded into Otterbox, the companies shared that the LifeProof branding is well-known and will be retained in some yet-to-be determined fashion.
We’ve been hearing rumblings of this acquisition for several weeks.
– Otterbox has an announcement tomorrow.
We got multiple anonymous tips about a LifeProof acquisition.
PR doesn’t return calls.
— Mark Gurman (@markgurman) May 21, 2013
Otterbox should buy Lifeproof. They could corner the market on protective iPhone cases.
Much like OtterBox, LifeProof is a rapidly growing, multi-million dollar business with a strong global brand, comprehensive product offering, impressive intellectual property and thriving company culture. Over the next 30 days, OtterBox will begin incorporating the LifeProof brand into the OtterBox family. More information about product availability and alignment will be determined at the completion of the integration.
“The joining of OtterBox and LifeProof is a way to combine two great brands and provide customers with even more great products, services and choices for smartphone accessories,” OtterBox CEO Brian Thomas said. “Both companies are successful because we foster an environment where everyone takes pride in being part of a culture that knows how to identify opportunities and grow them quickly. Our goal in this acquisition is to create more value for our customers than we ever could have generated while operating individually.”
A key driver for the acquisition is about creating customers who are passionate about the OtterBox brand. “Our strategy is to utilize our combined brand momentum, and world-class talent to create a great customer experience that generates OtterBox brand ambassadors for life,” Thomas said. “Our customers and our employees are the ones who have the passion for the brand that allows us to succeed. This passionate spirit motivates us to build better teams, better companies and ultimately, better communities. At the end of the day, that is our goal.”
OtterBox employs approximately 650 people worldwide. LifeProof employed approximately 250 people, who are now members of the OtterBox family and will remain in their San Diego location for the foreseeable future.
OtterBox has been a family-owned business since 1998. The financial details and terms of the agreement are confidential.
