Under the terms of the definitive merger agreement between the companies, Incipio will pay a total of approximately $177 million.
The transaction will be financed primarily through a new senior credit facility with Monroe Capital Advisors and Wells Fargo Bank. The transaction is not subject to a financing condition.
The purchase price represents approximately a 29% premium over Skullcandy’s closing share price on June 22, 2016, and approximately a 49% premium over the 90-day, volume-weighted average price. Excluding Skullcandy’s cash, cash equivalents and short-term investments of $46 million as of March 31, 2016, the enterprise value of $131 million represents a 59% premium over the enterprise value on June 22, 2016.