Mobility Electronics Inc. announced it scored a $10 million investment from Motorola Inc. and RadioShack Corp. for the expansion of its itip power products for low-power mobile electronic devices. Mobility Electronics said it will form an operating division exclusively dedicated to the design, development, marketing and sales of the product.
Motorola and RadioShack each invested $5 million in the company with the option for an additional $5 million each.
“The restructuring of our relationship with RadioShack and Motorola was driven by the opportunities available for the itip technology and the desire to create a structure that will optimize the ability to grow this business to significantly larger levels,” said Charlie Mollo, chief executive officer of Mobility Electronics. “As a result of the new structure, we expect the economics of this business to be substantially improved for Mobility, including increased revenue, gross profit and EBIT from sales of power products developed under this agreement for low-power mobile electronic devices. In addition, the equity investment will provide Mobility with increased capital to invest in the further growth of the business.”
Mobility Electronics said the moves would have a “modestly positive impact” on its 2005 earnings and a “material impact” on its 2006 results.
The company’s itip offering allows users to power multiple electronic devices with one wall plug.
