ACQUISITION OF HALO

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

ACQUISITION OF HALO

ACQUISITION OF HALO

On January 3, 2019 (the “Acquisition Date”), ZAGG Hampton LLC, a Delaware limited liability company and wholly owned subsidiary of the Company, entered into a membership interest purchase agreement (the “Purchase Agreement”) with Halo2Cloud, LLC (“HALO”) and its equity owners to acquire all of the outstanding equity interests of HALO (the “HALO Acquisition”). HALO is a leading direct-to-consumer mobile accessories company with an extensive intellectual property portfolio that specializes in wireless charging, car and wall chargers, portable power, and other accessories. The Company acquired HALO primarily to enter into new distribution channels and to expand its product and intellectual property portfolio.

During the nine months ended September 30, 2020, the Company paid $4,089 to HALO upon the achievement of the target Adjusted EBITDA as set forth in the Purchase Agreement and also $2,130 to HALO for cash held back by the Company at the Acquisition Date in relation to HALO's indemnification obligations.