Digital Turbine Announces Definitive Purchase Agreement to Acquire Mobile Posse
Mobile Posse Acquisition Expected to Further Diversify Mobile Platform and Create Attractive New Growth Opportunities
Digital Turbine announced today that it has entered into a definitive purchase agreement to acquire Mobile Posse, Inc., a mobile advertising platform company headquartered in Arlington, VA. The acquisition of Mobile Posse complements Digital Turbine’s expressed strategy to provide a comprehensive media and advertising solution for operators and OEMs by enriching the mobile experience for end users and delivering highly relevant content to their fingertips. The acquisition is expected to close in the fiscal fourth quarter.
“We are extremely excited to announce the acquisition of Mobile Posse today,” said Bill Stone, CEO of Digital Turbine. “We believe that this is a great transaction for our partners, advertisers, employees and shareholders. The early returns on our internally-developed Media Hub product showcased exciting potential, thereby encouraging us to profitably accelerate our growth efforts with these types of content offerings, and Mobile Posse has a proven track record of being one of the very best at providing users with richer media content. With a similar-minded focus on promoting higher user engagement and boosting advertising revenue for mobile operators and OEMs, Mobile Posse’s content discovery platform is a perfect complement to our own existing platform offering. I look forward to working with the highly skilled team at Mobile Posse to leverage our respective strengths and partner relationships in an effort to accelerate our mission to build the preeminent end-to-end mobile content delivery platform offering and thereby create additional, highly profitable, growth opportunities for Digital Turbine in the coming years. We look forward to providing more specific details regarding our financial expectations for Mobile Posse on future calls after the transaction has closed. However, based on preliminary unaudited financials, Mobile Posse is expected to have generated more than $55 million in total revenue and more than $10 million in EBITDA during calendar 2019. As such, considering the current run-rate of recurring business at Mobile Posse and the terms of consideration, we anticipate that the Mobile Posse transaction will be meaningfully accretive to our EBITDA following the transaction.”
“Mobile Posse is excited to join the Digital Turbine team,” said Jon Jackson, CEO of Mobile Posse. “As Bill referenced, the strategic rationale for the acquisition is very strong. We believe that Mobile Posse’s content discovery platform and Digital Turbine’s distribution and relationships combine to create a powerful and highly-differentiated industry solution. We look forward to joining forces to make that promise a reality.”
All historical financial information for Mobile Posse referenced above is unaudited and is subject to adjustment based on completion of the audit of Mobile Posse’s financial statements, which adjustments may be material. Investors therefore should not place undue reliance on such unaudited financial information. Following the closing of the acquisition, the Company intends to file the financial statements of Mobile Posse and furnish pro forma financial information as required by Securities and Exchange Commission rules.