Digital Turbine To Acquire Fyber For $570M

Digital Turbine Inc APPS inked an agreement to acquire a 95% stake in mobile advertising monetization platform Fyber N.V.  

• The aggregate consideration for the transaction valued at 100% of the Fyber shares amounted to $600 million. The purchase price included $150 million in cash, $400 million Digital Turbine shares, and a $50 million earn-out payment based on accomplishing certain future target net revenues over the year ended on March 31, 2022.
• The combined company was expected to lead to an end-to-end solution for mobile brand acquisition and monetization.
• The Fyber acquisition and the previous AdColony and Appreciate acquisitions would enable Digital Turbine to play a more prominent and profitable role in the fast-growing and secularly-thriving $200+ billion mobile advertising and connected TV marketplace as per Digital Turbine CEO, Bill Stone.
• Digital Turbine's cash balance amounted to $43.7 million as of December 31, 2020. It intends to pay the initial $150 million cash portion of the purchase price with a combination of available cash on hand and borrowings under its existing senior credit facility, along with future capital financing.
• APPS stock has gained 1,801% last year.
• Price action: APPS shares traded higher by 2.11% at $82.71 on the last check Monday.