STRAX, the mobile accessories specialist, has divested Gear4, mobile phone
case
protection brand, to ZAGG Inc, a global leader in mobile accessories for
MEUR 35
(“initial purchase price”) with potential additional payments of up to
MEUR 9
 (”additional purchase price”) based on 2019 sales development.
The
divestment is a share-based transaction, with US-based ZAGG Inc, acquiring
all
outstanding shares in Gear4 Hong Kong Ltd, a wholly-owned subsidiary of
STRAX.
The value of the transaction is MEUR 35 and is based on the 2018
forecasted
Gear4 sales generated by the STRAX group of companies. Eighty percent
of the
purchase price will be paid in cash and 20 percent will be paid in shares
in
ZAGG, which is listed on the Nasdaq US stock exchange. MEUR 26.5 will be
paid
in cash at completion with MEUR 5 of the total purchase price held back
in
escrow for five months and MEUR 3.5 for 18 months. The effective date of
the
transaction is 30 November 2018.

The transaction is based on a cash and
debt-free basis, and the initial cash
flow impact of STRAX will equal the
initial purchase price less the hold-back of
MEUR 8.5. The shares received as
part of the purchase price will be subject to a
customary 12-month lock-up
period, whereby the shares cannot be freely sold or
transferred. The shares can
be sold or distributed to STRAX shareholders after
the lock-up period and
release from hold-back.

STRAX will continue to distribute Gear4 products in
several markets, including
the UK, where Gear4 enjoys a market-leading position
in the mobile case
category.

While the transaction will negatively impact
STRAX’s consolidated annual sales
by MEUR 20-25, it will reduce headcount by 17
FTEs and OPEX by 8-10%, therefore
mitigating the EBITDA impact on a
consolidated basis.

Commenting on the transaction, Gudmundur Palmason, CEO,
STRAX Group, says: ”The
investment in, and subsequent divestment of Gear4 shows
the value creation
abilities of STRAX, through our brand development
competence, market reach and
positioning as one of the global leading
specialists in mobile accessories. We
believe the time to divest Gear4 is right
for both STRAX and our shareholders in
order to harvest some of its
success.

“Under the ownership of ZAGG, Gear4 will also gain the opportunity to
reach new
levels of success through their significant market reach,
particularly in North
America - the largest mobile accessories market in the
world. ZAGG is a global
leader in several mobile accessories categories and we
could not have found a
more suitable buyer of Gear4, which I’m convinced will
become another leading
global brand within ZAGG portfolio of brands.”

Chris
Ahern, CEO, ZAGG Inc, comments: ”From our position as one of the
leading
companies in the mobile accessories industry, with a primary focus on
screen
protection and charging products, we have identified Gear4 not only as
one of
the fastest growing protective case brands, but also a brand with a
very
promising future. Gear4, with its unique positioning – not least through
the
licensed D3O material – fits our portfolio perfectly, and broadens our
position
within the protection segment of the mobile phone accessories
industry. We are
happy that the STRAX team will pass the torch to us, after a
phenomenal job in
establishing Gear4 as one of the most significant brands in
its category, and
welcome the strong Gear4 team onboard.”

For further
information please contact Gudmundur Palmason, CEO, Strax AB, +46 8
545
01750

Logos in London have been legal advisor to STRAX in the transaction.
Vinge Law
firm have advised in capital market related questions.

About
STRAX
STRAX is a market-leading global company specializing in mobile
accessories.
STRAX has built a House of Brands to complement its value-added
customer
-specific solutions and services. STRAX House of Brands includes
proprietary
brands: XQISIT, Gear4, Urbanista and THOR GLASS and licensed
brands: adidas and
bugatti. In addition STRAX represents over 40 major mobile
accessory brands.
STRAX sells into all key channels ranging from telecom
operators, mass merchants
and consumer electronics to lifestyle retailers and
direct to consumers online.
STRAX was founded in Miami and Hong Kong in 1995
and has since grown across the
world. Today, STRAX has over 200 employees
across 13 countries with its
operational HQ and logistics center based in
Germany. STRAX is listed on the
Nasdaq Stockholm stock exchange.

About
GEAR4
Founded in 2006, Gear4 is the number one impact protection case brand in
the UK.
In 2015, Gear4 partnered with D3O to create world-leading impact
protection
products for consumer electronics. Now 10 years old and established
in over 40
countries, Gear4 has a proven track record of creating world-leading
products
that have satisfied millions of consumers worldwide. Working to the
impeccable
standards of British engineering and innovation, Gear4 prides itself
on
constantly delivering unique, well-designed products that protect
devices.
www.gear4.com

About ZAGG Inc

ZAGG Inc (NASDAQ:ZAGG) is a global
leader in accessories and technologies that
empower mobile lifestyles. ZAGG has
an award-winning product portfolio that
includes screen protection, power
management solutions, mobile keyboards, and
personal audio sold under the
InvisibleShield®, mophie®, ZAGG®, BRAVEN®, and
IFROGZ® brands. ZAGG has
operations in the United States, Ireland, and China.
For more information,
visit the Company’s
     websites
at www.zagg.com (https://www.globenewswire.com/Tracker?data=MFDH_OT
-3i
          Fq6f0aoNtexmDEa4cISkaCIl8-2k5k6a9HreW-JgmJavgkiao2SPx_1DFZ47iKD-fLQBXK
-TcitRBf8
          HNNbw4q3RIzcyHJDO4=),
www.mophie.com (https://www.globenewswire.com/Tracker?data
          =n8GEHcZZGhKwdhe4kZ7
-36XtmH-IG7Y0nEB2J8NH6
-lju6SdMECcLHgr4lk_tS5dwZmDFg8M3MWbu
     WHs70igUnHfVEDlt_NrEkAozslB0X0tOsiWoiLHHyH2uH
_8qwPt)and
     www.braven.com (https://www.globenewswire.com/Tracker?data=xypQgiE
-TIX0a3VDAysr
     HA0loQyL8_nrmA99dPG1u8wwtDMP_K0cPxkaiFBi4KFUiqyGwHtJ6Prvuvu6mjS9bg==
).

This
information is information that Strax AB is obliged to make public pursuant
to
the EU Market Abuse Regulation and the Securities Markets Act. The
information
was submitted for publication, through the agency of the contact
person set out
above, at 15:00 CET on November 30, 2018.