Mobility To Acquire iGo, Targeting Accessory Channel

Mobility Electronics iGo

Mobility, based here, and iGo both develop portable computing solutions.

Mobility signed a definitive agreement to acquire iGo for $5.1 million in cash, 2.6 million shares of Mobility, and up to an additional $1 million in cash and 500,000 additional shares subject to certain conditions.

The two companies complement each other's business well, said Charlie Mollo, president and CEO of Mobility.

Mobility focuses on developing new products and technology for the portable computing field, Mollo said. Its main product line is a universal docking station that allows external devices to connect to any brand of notebook PCs, as well as devices for the PDA market, including Ethernet cradles, interfaces allowing PDAs to connect to projectors, and special-purpose power adapters, he said.

IGo, on the other hand, focuses on such products as batteries, adapters and chargers for notebook PCs, cell phones and other handheld devices.

Mobility's main business is focused on OEMs, while iGo has a distribution and solution provider sales strategy, said Mollo. The acquisition will give Mobility a distribution strategy, he said. "We are still working out details regarding the channel branding," he said. "But we will definitely take advantage of the iGo brand awareness in the channel. We will keep the Mobility name for the OEM business."

Final approval by iGo shareholders is expected in about 60 days.

Both companies are listed on the Nasdaq stock exchange. The news of the acquisition, released early in the trading day Monday, had little impact on the companies' already-depressed stocks. By the market's close, Mobility's shares had risen 1 cent to $1.28, while iGo was up 5 cents to 32 cents a share.