Settlement of AdColony Earnout
Reference is made to announcement 26th February 2021 where Otello announced that it had entered into a definitive agreement to sell AdColony to Digital Turbine, Inc. (Nasdaq: APPS) for a total estimated consideration of $400 million. As part of the agreement was a an on-target earn-out of $200 million, to be paid fully in cash, based on AdColony achieving certain future target net revenue objectives in 2021.
Otello and Digital Turbine have agreed to settle the earn-out to a fixed amount of $204.5 million and the payment date has been moved forward to 15th January 2022. The initial payment done at closing of gross $100 million before working capital adjustments and the second installment of gross $100 million which is due 29th October 2021 are unchanged. With this agreement, the total consideration for the acquisition will be $404.5 million, including a normalized amount of working capital and $19 million in cash.
Petter Lade, CFO
Phone: +47 91143878