Affle 3i Limited’s wholly-owned step-down subsidiary, Affle MEA FZ-LLC, has entered into a definitive Asset Purchase Agreement to acquire strategic assets from Digital Turbine, Inc., known as AdColony Assets. This acquisition, valued at USD 4.70 million, is an asset purchase and will enhance Affle’s consumer platform business. The deal is expected to strengthen its market position and expand its reach in developed markets.
Strategic Asset Acquisition by Affle Subsidiary
Affle 3i Limited has announced a significant transaction through its wholly-owned step-down subsidiary, Affle MEA FZ-LLC (AMEA). AMEA has entered into a definitive Asset Purchase Agreement with Digital Turbine, Inc. (NASDAQ: APPS), an American company, to acquire the ‘AdColony Assets’. This acquisition is structured as an asset purchase and is being conducted on a slump sale basis.
Details of the Acquired Assets
The acquired ‘Assets’ include crucial strategic components of the AdColony business. These encompass the AdColony SDK for both iOS and Android devices, the underlying technology platform, existing integrations with in-app publishers and mediation platforms, the AdColony brand name, domain, and all associated goodwill. This acquisition is strategic and aimed at bolstering Affle’s consumer platform business.
Impact and Rationale of the Acquisition
The strategic assets acquired are expected to significantly enhance Affle’s offerings. The AdColony SDKs integrated with the publisher ecosystem will lead to an increased number of consumer touchpoints across the integrated consumer journey. This will improve the audience intelligence capabilities of Affle’s Consumer Platform and drive better conversion rates for advertisers. Furthermore, AdColony’s recognized brand name and established relationships will aid in penetrating developed markets more effectively.
Transaction Specifics
The transaction is not considered a related party transaction, and the promoters of Affle 3i Limited have no interest in the entity being acquired. The deal has been conducted on an ‘Arms’ Length Basis’. The consideration for this asset purchase is a fixed sum of USD 4.70 million, to be paid as upfront cash. The acquisition is anticipated to be completed within 7 Business Days.
Background of AdColony
AdColony operates as an ad monetization platform that connects mobile publishers and advertisers. While specific details regarding its date of incorporation, historical turnover for the last three years, and country of presence are not applicable as it is an asset purchase, the strategic assets themselves hold significant value for Affle’s global operations.
Source: BSE
