Opera announces $US155 million takeover of Skyfire

Mobile and web browser maker Opera Software has announced the takeover of mobile browser maker Skyfire.

According to a press release issued by Opera, the takeover deal is potentially worth up to $US155 million.

“The acquisition price includes a mix of cash and stock, with an upfront consideration of $US50 million (including $US8 million of cash on the Skyfire balance sheet) and performance based earn-out payments over three years, including $US26 million in cash held in escrow and funded upfront, that can bring the total deal size to $155 million,” Opera states.

Skyfire grew to prominence as one of the first Android web browser apps, along with its ability to allow users to watch Flash videos even if they don’t have Flash installed on their device.

Like Opera’s mobile browsers, Skyfire’s browser uses server side compression technology to reduce the amount of data used to download websites and videos.

“Opera and Skyfire are a natural fit,” says Opera Software chief executive Lars Boilesen.

“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.”