Otello Sells AdColony to Digital Turbine

Otello has agreed to sell mobile video marketing platform provider AdColony to Digital Turbine, a mobile technology provider, for $400 million.

"We are big believers in AdColony, its people, and its products, but also see the need to participate in a consolidating market where bigger is better," said Lars Boilesen, CEO of Otello, in a statement.

"The underlying strategic rationale for the combination is very promising. We believe that Digital Turbine, with its massive user base and extensive global relationships and distribution, will be uniquely positioned to benefit via the seamless integration of AdColony's mobile video advertising expertise and global brand advertiser awareness. The combination will yield a highly differentiated and more vertically integrated solution for the mobile advertising industry. We look forward to joining Digital Turbine to help navigate this innovation," Boilesen continued.

"We look forward to welcoming the AdColony team to the Digital Turbine family and believe that this strategic transaction accelerates our growth and is a positive for our partners, advertisers, employees, and shareholders," said Bill Stone, CEO of Digital Turbine, in a statement. "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. With the addition of AdColony, we will expand our collective experience, reach, and suite of capabilities to benefit mobile advertisers and publishers around the globe."

"Today's news about Digital Turbine's acquisition of AdColony underscores the rapid growth of mobile in-app and brand demand and the need for marketers to deliver direct brand campaigns where consumers are spending a more considerable amount of their time—on their mobile devices," said Stephen Upstone, CEO of LoopMe.