Why Digital Turbine Stock Popped Today

Shares of Digital Turbine (NASDAQ: APPS) popped by 14% today after the company said it would acquire AdColony. AdColony is a mobile ad platform that has 1.5 billion monthly active users worldwide. Digital Turbine has agreed to pay approximately $350 million to $375 million, which consists of $100 million in cash at closing, another $100 million in cash six months after closing, and earn-out payments of $150 million to $175 million contingent upon AdColony achieving certain performance targets in 2021.