iGo Acquires Aerial7

By Lisa Johnston -- TWICE, 10/18/2010

SCOTTSDALE, ARIZ. — iGo acquired Aerial7, a manufacturer of headphones and headsets, earlier this month.

In a statement, Michael Heil, president and CEO of iGo, said, “The acquisition of Aerial7 further expands our presence in the mobile device accessories market, increases our international footprint, and provides another catalyst for driving profitable growth in the future. With their exceptional designs and effective grassroots marketing campaigns, Aerial7 has created a strong niche in the young adult and professional audio markets.”

Heil said the founders of Aerial7 — Seth Egorin, Phil Johnson and Eljay Driessens — will be joining iGo. International sales are said to account for 60 percent of Aerial7’s annual $2 million revenue.

Wally Thornton, iGo product management and supply chain VP, told TWICE that Aerial7 offices will remain. When asked what will happen to the Aerial7 brand, Thornton said, “Thanks to the acquisition, we will be moving quickly and aggressively in the audio space. While we are still in the initial phase of forming our overall brand strategy, Aerial7 will continue with the designs and functionality that their customers have valued so highly.”

The bulk of iGo’s product mix includes charging solutions, and when asked if the company plans to move into other CE accessories categories, Thornton replied with the affirmative, noting its recent partnership with Cisco to create accessories for the new Flip video cameras, and iGo’s “introduction of the first pocket projector on the market to come bundled with HDMI connectivity.”

When asked about iGo’s strategies to compete in the saturated headphones market, Thornton said, “Our goal is to provide the best sound quality at a given price and with truly innovative designs. The market for offering consumers more for their money is always open.”

Total consideration for the Aerial7 acquisition was $3.34 million in cash, according to iGo.