Digital Turbine has entered into a definitive purchase agreement to acquire 95% shares in mobile advertising monetization platform Fyber N.V.
Digital Turbine (APPS) CEO, Bill Stone said, “We are very excited to welcome Fyber to the Digital Turbine team. Combined with our recently announced AdColony and Appreciate acquisitions, Fyber represents an extremely valuable puzzle piece for Digital Turbine to strategically assemble one of the largest full stack mobile advertising solutions in the industry that will be advantageously positioned to leverage the company’s vast device distribution footprint and array of innovative products, such as Single-Tap.”
Stone further added, “We believe that we will have all of the critical elements of a truly unique next-generation ad-tech ecosystem that, once integrated, will enable Digital Turbine to play a far more prominent and profitable role in the fast-growing and secularly thriving $200+ billion mobile advertising and connected TV marketplace.”
Fyber has expertise in mediation and real time bidding. It has a network of more than 180 programmatic demand partners which reach a total of 650 million unique monthly active users across the globe.
Digital Turbine expects the transaction to close in 2Q. The total consideration of $600 million based on the entire stake in Fyber includes $150 million in cash, $400 million in newly issued Digital Turbine stock, and an earn-out payment of $50 million based on revenue targets and to be paid in either cash or Digital Turbine stock. (See Digital Turbine stock analysis on TipRanks)
On March 15, Roth Capital analyst Darren Aftahi reiterated a Buy rating on the stock with a target price of $100 (19.5% upside potential). In a note to investors, Aftahi said, “While the mobile advertising space is highly competitive, APPS’ vast market reach and control over installs(at the device level), could in our opinion, give it an advantage in leveraging AC’s (AdColony) technology relative to competitors that lack real estate on devices.”
Turning to rest of the Street, the stock has a strong Buy consensus rating alongside an average analyst price target of $85.83 (2.5% upside potential) based on 5 Buys and 1 Hold. Shares have rallied a massive 1801.4% over the past year.
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