Opera Acquires Mobile Video Ad Platform AdColony for $275m

opera adcolony mergeOpera has bought AdColony, a mobile video ad platform.

The deal brings together one of the biggest companies in mobile video with Opera Mediaworks, one of the largest platforms for mobile internet and in-app adverts.

According to a statement released to the Norwegian stock market, where Opera is listed, the deal was made for $75m (£44m) in cash, plus potential earn-outs that bring the total value up to $275m.

Opera has heavily promoted its compression algorithms that provide faster download speeds that use less data, while AdColony has worked to create technology that facilitates fast loading of video ads, suggesting the companies will play to each others strengths and drive greater use of high-definition video in mobile ads.

“Opera is growing rapidly and we are constantly looking for opportunities to bring best-of-breed services to the market,” said Lars Boilesen, CEO of Opera Software. “AdColony is a natural fit for Opera and our mobile advertising subsidiary, Opera Mediaworks. This acquisition will augment our services with a robust specialisation around mobile video – the fastest growing segment within the mobile advertising industry.”

AdColony will continue support for its existing customers as usual following the purchase, and CEO Will Kassoy will continue in his position at the company, as well as taking on the role of Chief Marketing Officer at Opera Mediaworks.

“Opera Mediaworks shares our vision to enhance the mobile ecosystem and deliver the highest quality mobile video experience in the world,” said Kassoy. “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.

“We are excited to now be part of Opera Mediaworks renowned global organisation and look forward to unlocking tremendous synergies together.”