(Reuters) – Zagg Inc, a U.S. manufacturer of protective cases for smartphones and tablets, is weighing options that include a potential sale after attracting acquisition interest from buyout firms, people familiar with the matter said on Tuesday.
Zagg has become a takeover target amid softer demand for smartphones and U.S. tariffs on Chinese goods that have hit its supply chain. Its shares have lost close to three-fourths of their value since their peak in November 2017.
The Salt Lake City-based 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 imminent and there is no certainty that any transaction will occur, the sources added.
The sources asked not to be identified because the deliberations are confidential. Zagg representatives did not respond to requests for comment.
Zagg shares jumped 21% to $7.28 on the news, giving the company a market capitalization of around $210 million.
Zagg makes various accessories for electronics, including Gear4 smartphone cases, Braven headphones, and Mophie battery phone cases. Its products are distributed via Best Buy, Verizon, AT&T, Sprint, T-Mobile, Walmart, Target, and Amazon.com.
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.
Zagg is scheduled to report second-quarter earnings later on Tuesday.
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