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FORT COLLINS - OtterBox's acquisition of LifeProof raises the companies' combined market share upwards of 30 percent, increasing OtterBox's dominance in its market.
The Fort Collins-based manufacturer of protective cases for smartphones and other mobile devices caused a stir with its acquisition of rival LifeProof. The acquisition led to a jump in OtterBox's value, triggering speculation about what the privately held company might do next.
The acquisition marked OtterBox's second in six months, following its November purchase of Wrapsol, a Boston-based manufacturer of protective film wrap for mobile technology.
Moody's Investor Services Inc. valued the LifeProof purchase at $325 million as part of the agency's rating for a $400 million senior-secured term loan to OtterBox. OtterBox did not disclose financial terms of the acquisition and has questioned the accuracy of information published by ratings agencies.
The OtterBox acquisition of San Diego-based competitor LifeProof, announced May 22, came one day after a patent-infringement lawsuit between the two firms was dismissed. Officials for OtterBox said the acquisition was not part of a settlement.
OtterBox already claims 23 percent market share in the mobile case business. LifeProof accounted for 5 percent to 7 percent of market share, said Michael Morgan, a...