Skullcandy Stock Up 22% Following Incipio Buyout Bid

Skullcandy Inc SKUL shareholders couldn’t care less about what’s going on in Britain. On an extremely weak day for global equities, Skullcandy’s stock has surged 22.0 percent in early Friday trading after the audio and gaming company announced a merger with global consumer technology platform Incipio LLC.

Incipio will be paying $177 million in cash for Skullcandy, making the deal worth $5.75/share for investors. The price represents a more than 22 percent premium over Thursday’s closing price.

“Skullcandy and Astro amplify our dynamic mix of products and brands, while bolstering the technical and operational capabilities that serve as the foundation of our platform,” Incipio Founder and CEO Andy Fathollahi said of the merger.

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“We share a common culture, vision and commitment to driving innovation and this merger will allow our two teams to amplify their efforts going forward,” Skullcandy CEO Hoby Darling added.

Monroe Capital Advisors and Wells Fargo & Co WFC will reportedly be financing the deal.

Under the terms of the agreement, Skullcandy has a one-month window to solicit competing bids for the company. The deal is expected to close sometime in Q3.

Despite the stock’s big post-deal pop, Skullcandy remains down 29.7 percent over the past year.

At time of writing, Skullcandy was up 21.79 percent on the day, trading at $5.70.

Disclosure: The author holds no position in the stocks mentioned.