Opera has canceled its full takeover by a Chinese consortium after transaction conditions were not met by the deadline of 15 July. Opera has, however, approved an alternative transaction, for EUR 600 million: the sale of some of its consumer business and namely, its mobile browser, including its Operator Co-brand systems, its desktop browser, performance and privacy apps, Opera’s technology license business outside of Opera TV, and Opera’s 29.09 percent stake in Chinese joint venture nHorizon. The purchase price is subject to customary adjustments for NIBD and working capital at closing.
This new transaction with the consortium, made up of Golden Brick Silk Road Equity Investment Fund with partners Beijing Kunlun Tech, Qihoo 360 Software and Yonglian (Yinchuan) Investment, has been approved by Opera’s board of directors.
Opera’s CEO Lars Boilesen, will serve as CEO for both Opera and the Consumer Business until 31 December. After this date, he will no longer hold the role of CEO for the Consumer Business, and will be solely dedicated to Opera.
Opera Mediaworks, Opera Apps & Games (including Bemobi), and Opera TV are not included in the deal. The company’s remaining Consumer Business operations will be reorganised into a separate company structure.
The sale is expected to take place during the second half of the third quarter. Closing is still subject to a number of conditions, but is not subject to any financing conditions or due diligence. Following completion, Opera will take a look at its financial structure and most likely use proceeds to shore up debt, give back to shareholders or stage buy-backs. As of 31 March, the company had net debt of USD 160 million, with future earn-out obligations estimated at USD 123 million.
Looking forward to this full year, Opera expects revenues from its three remaining business units up 22-30 percent to USD 570-605 million, with the adjusted EBITDA up 2-22 percent to USD 75-90 million. The company will give an updated outlook when it reports second quarter results.
