Transaction Experience

Client Quotes:

“ Architect Partners catalyzed conversations with Opera Software and helped craft a deal many times better than the original offer.”

–Jeff Glueck, Skyfire CEO

“ Architect Partners combined the responsiveness of a small firm with a full service approach, executed by the principals with greater skill than we see from bankers with much larger firms.”

–Larry Orr, Trinity Ventures, Board of Directors

Financial Summary:

Transaction Size: $76mm – $155mm
Consideration: Cash and stock

Valuation Metrics:
Enterprise Value Multiple of Revenue:
Last Twelve Months ($4 million): 19x – 38x
2013 Estimate ($13 million): 6x – 12x

Strategic Rational Driving Transaction:

  • Opera Software intends to bolster its wireless carrier business with new products that address the challenges associated with the dramatic increase of video traffic from mobile devices.
  • Skyfire’s cloud-based Rocket Optimizer product provides wireless carriers a dramatic boost in network capacity by optimizing video streams based on available bandwidth and device characteristics.
  • Skyfire’s mobile browser extension and toolbar, Horizon, allows users to personalize their browsing experience and gives wireless carriers valuable new “beachfront” real estate which can be directly monetized via promotions, ads and commerce.
  • Skyfire’s U.S. wireless carrier presence perfectly complements Opera’s rest-of-world strength.

Architect Partners Role and Contribution:

  • AP initiated discussions between Opera and Skyfire.
  • Intensive involvement with identifying and articulating the strategic rationale supporting the transaction.
  • AP helped the Skyfire Board and management team assess all available alternative options, providing critical clarity to assist with decision-making.
  • Quarterbacked negotiations and negotiating strategy.
  • Previously assisted Skyfire with raising $8mm in a strategic financing led by Verizon Ventures.

To learn more about this transaction, view the full M&A Alert here.