AUSTIN, Texas, March 2, 2021 /PRNewswire/ -- Digital Turbine,
Inc. (Nasdaq: APPS) announced today that it has acquired all of the
capital stock of Triapodi Ltd. (d/b/a Appreciate), a programmatic
mobile advertising DSP company headquartered in Israel. Appreciate's platform collaborates
closely with mobile measurement partners ("MMP"s), exchanges,
advertisers and other partners to programmatically provide a
transparent ecosystem designed to optimize user-acquisition and ROI
for the mobile marketers utilizing its platform. Appreciate
currently runs approximately 60 billion daily auctions on its
platform.
The acquisition of Appreciate is fully consistent with Digital
Turbine's expressed strategy to provide a comprehensive media and
advertising solution for our operator and OEM partners while
enriching the mobile experience for end users by delivering highly
relevant content to their fingertips.
Total consideration paid for the Appreciate acquisition was
$22.5 million in cash. Digital
Turbine also agreed to provide $6.0
million in performance and retention bonuses to the founders
and certain other employees of Appreciate.
"We are thrilled to announce the acquisition of Appreciate and
welcome their technology talent to the Digital Turbine team," said
Bill Stone, CEO of Digital Turbine.
"Digital Turbine has already been actively working with Appreciate
and has attained highly successful results, particularly with
respect to the scaling of our Single-Tap functionality. The
acquisition of Appreciate delivers valuable deep ad-tech and
algorithmic expertise to help Digital Turbine execute on its
broader, longer-term vision. Adding Appreciate would also be
highly synergistic with the business of AdColony, with respect to
which we recently entered into a definitive purchase
agreement. Appreciate and AdColony already work together, and
there are numerous revenue synergies between the companies to
further leverage each other's strengths.
"We are excited to be part of the Digital Turbine team," said
Amir Maor, CEO and Co-Founder of
Appreciate. "Deploying our technology expertise across
Digital Turbine's global scale and reach will further benefit
partners and advertisers that are a part of the combined company's
platform. Our initial results with Digital Turbine's unique
Single-Tap capabilities have been highly encouraging, and we
eagerly look forward to ramping those efforts to even greater
scale."
About Digital Turbine, Inc.
Digital Turbine simplifies content discovery and delivers
relevant content directly to consumer devices. The Company's
on-demand media platform powers frictionless app and content
discovery, user acquisition and engagement, operational efficiency
and monetization opportunities. Digital Turbine's technology
platform has been adopted by more than 40 mobile operators and OEMs
worldwide, and has delivered more than three billion app preloads
for tens of thousands of advertising campaigns. The Company is
headquartered in Austin, Texas,
with global offices in Arlington,
Durham, Mumbai, San
Francisco, Singapore and
Tel Aviv. For additional
information visit www.digitalturbine.com.
Forward-Looking Statements
This news release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Statements in this news release that are not statements of
historical fact and that concern future results from operations,
financial position, economic conditions, product releases and any
other statement that may be construed as a prediction of future
performance or events, including financial projections and growth
in various products are forward-looking statements that speak only
as of the date made and which involve known and unknown risks,
uncertainties and other factors which may, should one or more of
these risks uncertainties or other factors materialize, cause
actual results to differ materially from those expressed or implied
by such statements. These factors and risks include:
- a decline in general economic conditions nationally and
internationally
- decreased market demand for our products and services
- market acceptance and brand awareness of our products
- risks associated with indebtedness
- the ability to comply with financial covenants in outstanding
indebtedness
- the ability to protect our intellectual property rights
- risks associated with adoption of our platform among existing
customers (including the impact of possible delays with major
carrier and OEM partners in the roll out for mobile phones
deploying our platform)
- actual mobile device sales and sell-through where our platform
is deployed is out of our control
- risks associated with our ability to manage the business amid
the COVID-19 pandemic
- the impact of COVID-19 on our partners, digital advertising
spend and consumer purchase behavior
- the impact of COVID-19 on our results of operations
- risks associated with new privacy laws, such as the European
Union's GDPR and similar laws which may require changes to our
development and user interface for certain functionality of our
mobile platform
- risks associated with the timing of our platform software
pushes to the embedded bases of carrier and OEM partners
- risks associated with end user take rates of carrier and OEM
software pushes which include our platform
- new customer adoption and time to revenue with new carrier and
OEM partners is subject to delays and factors out of our
control
- risks associated with fluctuations in the number of our
platform slots across US carrier partners
- required customization and technical integration which may slow
down time to revenue notwithstanding the existence of a
distribution agreement
- risks associated with delays in major mobile phone launches, or
the failure of such launches to achieve the scale
- customer adoption that either we or the market may expect
- the difficulty of extrapolating monthly demand to quarterly
demand
- the challenges, given the Company's comparatively small size,
to expand the combined Company's global reach, accelerate growth
and create a scalable, low-capex business model that drives EBITDA
(as well as adjusted EBITDA)
- ability as a smaller company to manage international
operations
- varying and often unpredictable levels of orders; the
challenges inherent in technology development necessary to maintain
the Company's competitive advantage such as adherence to release
schedules and the costs and time required for finalization and
gaining market acceptance of new products
- changes in economic conditions and market demand
- rapid and complex changes occurring in the mobile
marketplace
- pricing and other activities by competitors
- technology management risk as the Company needs to adapt to
complex specifications of different carriers and the management of
a complex technology platform given the Company's relatively
limited resources
- risks and uncertainties associated with the integration of the
acquisition of Appreciate, including our ability to realize the
anticipated benefits of the acquisition
- risks and uncertainties associated with the completion and
integration of the acquisition of AdColony, including the
satisfaction of closing conditions
- the impact on our operations and stock price if the acquisition
of AdColony is not completed
- risks and uncertainties associated with the integration of the
acquisition of AdColony, including our ability to realize the
anticipated benefits of the acquisition and the satisfaction of
related earn-out provisions
- other risks including those described from time to time in
Digital Turbine's filings on Forms 10-K and 10-Q with the
Securities and Exchange Commission (SEC), press releases and other
communications.
You should not place undue reliance on these forward-looking
statements. The Company does not undertake to update
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Investor Relations Contacts:
Brian Bartholomew
Digital Turbine
brian.bartholomew@digitalturbine.com
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SOURCE Digital Turbine, Inc.