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Incipio to buy headphone maker Skullcandy

incipio to buy skullcandy 5
Skullcandy, creator of high-end affordable music and gaming headphones, is looking for a buyer to help take its company private again. The company has agreed to be purchased by Incipio for $177 million to further that goal. Since the company’s initial public offering in 2011, stock prices have fallen as revenue growth has slowed.

The company attributes this slowdown to the stronger dollar and its effect on Skullcandy’s sales outside of the U.S. In preparation for a purchase and potentially merging business models, standard severance agreements have been put into play for executives, should a purchase trigger a “change in control,” according to the Wall Street Journal.

Skullcandy owes its roots to founder Rick Alden, who while “shredding some fresh powder” on a slope in Park City, struggled to get his music ear bud out of his ear to answer a cell phone call. He decided then, on the slopes, to create a set of headphones that deliver quality sound with the ability to switch seamlessly from music to calls.

Skullcandy now focuses on delivering a high fidelity, high style, and highly affordable product that is capable of performing under extreme situations. According to Skullcandy, the headsets are built to take abuse, not to be displayed on a shelf. The company’s goal is to “push human potential through the power of music.”

Many think that Incipio would be a good fit for the strong Skullcandy brand. Incipio is a closely held company that owns and licenses fashion and technology accessories such as Incase smartphone cases and Tavik swimwear. The product offering from the combined brands would offer an expanded line of fashion forward products and accessories targeted at gaming and technology consumers.

Ultimately, Skullcandy will have a one month time frame to shop Incipio’s offer, and to see if another interested company is willing to offer more. Many hope that Incipio’s offer holds, if nothing else, to see the new products that the two companies can offer with a combined product line.

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