Opera Software has announced that it has acquired Silicon Valley based Skyfire Labs, company specialising in mobile video optimisation and cloud solutions for mobility.
Skyfire, headquartered in Mountain View, California, is known for its Rocket Optimizer software. This allows mobile operators to leverage cloud computing to optimise virtually any video and other multimedia on crowded cell towers, including 3G and 4G LTE networks.
“Opera and Skyfire are a natural fit,” said Lars Boilesen, CEO, Opera Software. “Both companies have evolved far beyond their browser roots. Skyfire adds capabilities to our portfolio around video, app optimization, smartphones and tablets, and strength in North America. With video expected to consume over two-thirds of global mobile bandwidth by 2015, and as time spent on Android and iOS apps explodes, we are excited to extend Opera’s solutions for operators.”
Skyfire currently counts three large U.S. mobile operators as customers for its Rocket Optimizer and Skyfire Horizon solutions, and is in trials with ten other operators around the world. “Opera practically invented cloud compression to improve mobile user experience, and the team at Skyfire is proud to join forces and advance cloud solutions together,” said Jeffrey Glueck, CEO of Skyfire.
The acquisition price includes a mix of cash and stock, with an upfront consideration of $50 million (including $8 million of cash on the Skyfire balance sheet) and performance based earn-out payments over three years, including US$26 million in cash held in escrow and funded upfront, that can bring the total deal size to $155 million.
The Opera acquisition of Skyfire is expected to close before March 15, 2013.
