* Purchase price estimated at about $245 million
* Lifts revenue and earnings forecasts for 2014, 2015
* Closing of the deal expected by August 15
(Adds further details, background)
OSLO, June 24 Norwegian mobile phone software
firm Opera Software ASA is to buy U.S.-based mobile
video advertising platform AdColony, it said on Tuesday, lifting
its earnings forecast for 2014.
Opera said the acquisition would strengthen its position in
the fast growing mobile advertising industry, with a combined
consumer audience of more than 700 million.
"AdColony is a natural fit for Opera and our mobile
advertising subsidiary, Opera Mediaworks," said Lars Boilesen,
chief executive of Opera.
"This acquisition will augment our services with a robust
specialization around mobile video - the fastest growing segment
within the mobile dvertising industry," he added.
Under the brand name Opera Mediaworks, the company has grown
rapidly by acquiring firms like AdMarvel, Mobile Theory and 4th
screen. It added German startup Apprupt to the list earlier this
year and has said it planned to add more.
Opera said on Tuesday it would pay $75 million in cash for
AdColony plus potential earn-out payments of up to $275 million,
with the total purchase price estimated at about $245 million.
Earlier this month Opera had denied that it was about to
make an acquisition, following a report by online publication
Techcrunch that it was about to buy AdColony for up to $275
The Norwegian firm also said on Tuesday it was raising its
2014 full year revenue forecast range to $435-$460 million from
$390-410 million previously, and its adjusted EBITDA range to
$110-120 million from $108-116 million, assuming that the
transaction will be closed by Aug. 15.
The company also said it raised its 2015 "financial
aspirations" to $670 million in revenue and $180 million in
adjusted EBITDA, up from $500 million and $150 million
Spending on mobile advertising is expected to grow to $41.9
billion by 2017, with mobile video advertising showing the
highest growth rate, Opera said, citing Gartner research.
(Reporting by Henrik Stolen and Camilla Knudsen; Writing by
Nerijus Adomaitis; Editing by Greg Mahlich)