Norway-based mobile browser specialist, Opera Software, said it has agreed to acquire U.S.-based mobile video advertising platform, AdColony, to provide mobile video advertising to publishers and advertisers with a combined reach of more than 700 million global consumers.
According to Reuters, the total purchase price is estimated at about $245 million (€180 million). In November last year, Opera Software raised 548 million kroner (€65.5 million/$89 million) to fund future acquisitions by issuing 8 million new shares.
Assuming the transaction closes by August 15, Opera also said it was raising its 2014 full year revenue forecast range to $435 million to $460 million, from $390 million to $410 million previously, and its adjusted EBITDA range to $110 million to $120 million, from $108 million to $116 million.
"AdColony is a natural fit for Opera and our mobile advertising subsidiary, Opera Mediaworks. This acquisition will augment our services with a robust specialisation around mobile video--the fastest growing segment within the mobile advertising industry," said Lars Boilesen, CEO of Opera Software.
AdColony specialises in providing HD video ads across the most popular iOS and Android smartphone and tablet apps, using its proprietary Instant-Play video ad technology. The company will continue to support its existing customers following the acquisition, while Will Kassoy will remain CEO of AdColony as well as taking on the additional role of chief marketing officer of Opera Mediaworks.
Opera said mobile video advertising is the fastest growing advertising segment in the digital advertising sector. Citing figures from Gartner, the company said mobile advertising spend is expected to grow to $41.9 billion by 2017, with mobile video advertising showing the highest growth rate.
For more:
- see this Opera release
- see this Reuters article
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