On-device media platform Digital Turbine has agreed to acquire AdColony, a mobile advertising company, from Otello Corp for somewhere in the range of $350m to $375m.
Digital Turbine intends to use the acquisition, which is expected to close next month, to help toward its ambition of providing a comprehensive media and advertising solution for its partners, while providing relevant mobile content to end users.
“We are extremely excited to announce the acquisition of AdColony today,” said Bill Stone, CEO of Digital Turbine. “We look forward to welcoming the AdColony team to the Digital Turbine family and believe that this strategic transaction will accelerate our growth and is a positive for our partners, advertisers, employees and shareholders.
“AdColony saw the secular tailwinds toward mobile, video and high-speed networks like 5G before most and has been able to capitalize on its vision. The ability for Digital Turbine to utilize AdColony's unique mobile advertising solutions across our vast device distribution footprint will unlock significant new monetization opportunities for the combined company's platform offerings.
“With the addition of AdColony, we will expand our collective experience, reach and suite of capabilities to benefit mobile advertisers and publishers around the globe. Performance-based spending trends by large, established brand advertisers present material upside opportunities for platforms with unique technology deployable across exclusive access to inventory.”
The transaction will be made up of $100m in cash to be paid at closing; $100m in cash to be paid six months after closing; and estimated expected earn-out payment in the range of $150m to $175m, based on AdColony achieving certain targets this year.