Chinese consortium further scales back Opera deal to $575m
A PE-backed Chinese consortium has agreed to scale back its ongoing acquisition of the web browser business of Norway’s Opera Software to a value of $575 million. It follows a renegotiation earlier this year that agreed a $600 million deal as an alternative to a failed takeover bid worth $1.2 billion.
The consortium includes Golden Brick Capital Private Equity Fund I, which is managed by Hong Kong-based private equity firm Golden Brick Capital - one of the participants in the take-private of Chinese internet security software provider Qihoo 360 Technology. According to a statement, the consortium will offer a reduced compensation package due to two mobile services-focused units being excluded from the deal.
Opera will now retain its Skyfire mobile video optimization business as well as its mobile privacy and security encryption provider SurfEasy. These units will continue to cooperate and provide services to the block of consumer assets still being acquired by the consortium. The acquisition remains on track for finalization in the third quarter 2016.
Last month, the transaction was amended to include a $600 million purchase price for the transfer of Skyfire, SurfEasy, mobile and desktop browsers, a technology licensing business and a 29% stake in Horizon Innovation Software, a Chinese joint venture between Opera and Telling Telecommunication. These terms represented an alternative option after it became clear that government approvals for the proposed takeover of Opera would not be forthcoming.
In February, the consortium offered NOK71 per share for the company, which at the time had been trading in a range of NOK40-50 per share. The stock fell as much as 17% after the July 15 deadline for regulatory approval of the takeover. It was last trading at NOK55.
Opera is the fourth-largest browser provider globally, after Google's Chrome, Alibaba Group-controlled UCWeb, and Apple's Safari. Its products are used by more than 350 million internet users. Revenue came to $615.9 million in 2015, up from $480.8 million the previous year, while adjusted EBITDA fell from $118 million to $108 million. It posted a net loss of $51.2 million in 2015 compared to a loss of $58.1 million in 2014.
Golden Brick focuses on investments in technology, media and telecom, energy and natural resources, and has about $3 billion in assets under management.
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