Opera Software on Tuesday announced that it has acquired mobile video advertising startup AdColony and that it has raised its earnings forecast for 2014.

The AdColony acquisition deal will cost Opera $75 million in cash, plus potential earn-out payments of up to $275 million, totalling the final cost to around $350 million.

The browser maker said the addition of AdColony is likely to boost its presence in the fast growing mobile advertising industry making the company’s advertising subsidiary, Opera Mediaworks, more comprehensive for advertisers.

“AdColony is a natural fit for Opera and our mobile advertising subsidiary, Opera Mediaworks,” Opera Chief Executive Lars Boilesen said in a press release.

“This acquisition will augment our services with a robust specialization around mobile video – the fastest growing segment within the mobile advertising industry.”

Opera also said that AdColony will continue to support its existing customers even post acquisition. Will Kassoy will continue to serve as AdColony’s CEO as well as take on the additional role of Chief Marketing Officer for Opera Mediaworks.

“Opera Mediaworks shares our vision to enhance the mobile ecosystem and deliver the highest quality mobile video experience in the world,” said Kassoy.

“Our keen focus on the consumer experience in mobile apps combined with the massive growth of mobile video consumption worldwide, has catapulted our growth and made us a go-to partner for app developers and advertisers. We are excited to now be part of Opera Mediaworks’ renowned global organization and look forward to unlocking tremendous synergies together.”

In addition, the Norwegian firm also said that it has raised its 2014 full year revenue forecast range to $435-$460 million from previously estimated $390-410 million. The acquisition is expected to close by August 2015.