Why Digital Turbine Stock Popped Today
Shares of Digital Turbine (NASDAQ: APPS) popped by 14% today after the company said it would acquire AdColony. The deal is expected to bolster Digital Turbine's on-device advertising business.
AdColony is a mobile ad platform that has 1.5 billion monthly active users worldwide. Digital Turbine has agreed to pay approximately $350 million to $375 million, which consists of $100 million in cash at closing, another $100 million in cash six months after closing, and earn-out payments of $150 million to $175 million contingent upon AdColony achieving certain performance targets in 2021. Digital Turbine will fund the deal with cash on hand, as well as borrowings under an existing credit facility.
Image source: Getty Images.
Source Fool.com
