Norwegian mobile phone software maker Opera confirmed Tuesday its acquisition of the mobile video advertising platform AdColony.
The deal was made for $75 million in cash, plus potential earn-out payments of up to $275 million — bringing the final price tag to the range of $350 million.
Opera said the addition of AdColony will make its advertising subsidiary, Opera Mediaworks, more comprehensive for advertisers, while also offering publishers more scale and scope with the mobile-focused ad server.
AdColony has become a big player in the growing mobile video ad space, which made the US-based company a "natural fit" for Mediaworks, according to Opera's CEO Lars Boilesen:
Opera is growing rapidly and we are constantly looking for opportunities to bring best-of-breed services to the market. This acquisition will augment our services with a robust specialization around mobile video – the fastest growing segment within the mobile advertising industry.
Opera said AdColony will continue to support its existing customers following the acquisition, with Will Kassoy will continuing on as AdColony’s CEO. He’ll pull double duty though, taking on the additional role of chief marketing officer of Opera Mediaworks.
Kassoy said in prepared remarks:
Opera Mediaworks shares our vision to enhance the mobile ecosystem and deliver the highest quality mobile video experience in the world. Our keen focus on the consumer experience in mobile apps combined with the massive growth of mobile video consumption worldwide, has catapulted our growth and made us a go-to partner for app developers and advertisers.