Benzinga | Feb 26, 2021 06:53AM EST

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.