What happened Shares of Digital Turbine (NASDAQ: APPS), a mobile communication software company, jumped 11.4% as of 12:10 p.m. EST on Wednesday. The sharp increase in Digital Turbine's stock price follows an announcement that the company completed its acquisition of mobile content discovery and advertising platform Mobile Posse. Image source: Getty Images. So what Management believes the strategic acquisition of Mobile Posse diversifies its mobile platform business and creates new growth opportunities for Digital Turbine. "Mobile Posse has a highly profitable business model with recurring revenue streams and an attractive margin structure," said Digital Turbine CEO Bill Stone in a press release. Also likely helping Digital Turbine's stock rise on Wednesday was Canaccord analyst Austin Moldow's decision on Wednesday to increase his 12-month price target on the stock to $12, up from $8. He cited the impact of the acquisition on financials for his increased optimism. Now what The acquisition will be immediately accretive to Digital Turbine. The company raised its guidance for its fiscal fourth quarter, guiding for revenue between $37.6 million and $39.2 million. This compares to previous guidance for revenue between $33.2 million and $34.5 million. Management additionally forecast adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the period to be between $4.5 million and $5.0 million, up from a previous outlook for $3.5 million to $4.0 million. 10 stocks we like better than Digital TurbineWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Digital Turbine wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source