Browser maker Opera announced a buyout offer from a Chinese consortium of Internet-focused companies as well as from a number of investment firms.
The agreement, which is said to have an acquisition amount of $1.2 billion, will allow the Norway-based company to gain access to the extensive user base of the companies as well as financing support options for the company's growth potential.
The deal covers 100 percent of the company, which represents a 53 percent premium on the valuation it earned from its current trading price. The company's board said that is has unanimously recommended its shareholders to take the bid offer.
"Our Board has undertaken a careful review of the terms and conditions of the Offer and is unanimous in its recommendation," said Chairman of the Board Sverre Munck. "We commend the management team on the work they have done on behalf of the shareholders, employees and other Opera stakeholders."
The deal partners include Qihoo 360, one of the most visible Internet firms in China, and Kunlun, which was recently listed as a game firm. Investment company Yonglian became the final member of the consortium.
While Opera is more popularly known for its browser, the company has also ventured into other areas that include advertising and data compression. Though it has yet to gain a large market share on the desktop, Opera became one of the leading mobile browsers on early devices, which can be attributed to its relatively small file size and speed.
Rumors on the buyout offer began to emerge last week, following the Oslo stock exchange's decision to discontinue the trading activities that involved the company's Software shares. The company is said to reveal more information on the terms of the acquisition in an earnings call scheduled on Wednesday.
"We believe that the Consortium, with its breadth of expertise and strong market position in emerging markets, will be a strong owner of Opera," said Lars Boilesen, Opera's CEO. "The Consortium's ownership will strengthen Opera's position to serve our users and partners with even greater innovation, and to accelerate our plans of expansion and growth."
Opera claims that its user base now boasts 350 million users, covering both mobile and desktop devices. The company has also invested heavily on mobile advertising and has made acquisitions that include VPN service SurfEasy and Bemobi, a subscription-based service that offers mobile-app search.
