SKUL Skullcandy, Inc. (MM)

Skullcandy Inc. agreed to be acquired by Incipio LLC with a sweetened offer that values the headphone maker at roughly $188.6 million, potentially ending a takeover battle with private-equity firm Mill Road Capital Management.

Incipio, whose products include accessories for smartphones and tablets, raised its offer to $6.10 a share, topping shareholder Mill Road Capital's bid of $6.05 a share for the stake in the company it didn't already own.

Skullcandy said it no longer considers the offer by Mill Road, which valued the company at $173.2 million, superior to Incipio's initial offer of $5.75.

Mill Road, which disclosed a 9.8% stake in Skullcandy in June, made its offer just days after the headphone maker reached its initial deal with Incipio. That agreement with Incipio had included a one month "go-shop" period to look for higher offers and a termination fee of $6.2 million that Skullcandy could pay to Incipio.

Earlier in June, the investment firm of Skullcandy founder and former Chief Executive Rick Alden said it was exploring whether to pursue taking the headphone maker private.

Skullcandy shares, down 15% in the past year, closed Tuesday at $6.06 a share and were inactive premarket.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

August 03, 2016 09:45 ET (13:45 GMT)

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