Digital Turbine Acquires Mobile Advertising Platform AdColony For $400M

Mobile technology company Digital Turbine, Inc. (NASDAQ: APPS) inked an agreement to acquire AdColony from Otello for an estimated consideration of $400 million.
The $400 million price tag includes $100 million in cash to be paid at closing, $100 million in cash to be paid six months following the closing, and earn-out of $200 million, to be paid fully in cash, based on AdColony achieving certain future target net revenue objectives in 2021.
The earn-out portion is not capped and is subject to change based on actual results.
"The ability for Digital Turbine to utilize AdColony's unique mobile advertising solutions across our vast device distribution footprint unlocks significant new monetization opportunities for the combined company's platform offerings. Performance-based spending trends by large, established brand advertisers present material upside opportunities for platforms with unique technology deployable across exclusive access to inventory," said Digital Turbine CEO Bill Stone.
Price action: APPS shares fell 8.39% at $72.38 on Thursday.