The deal is expected to close by March 15 2013.
Opera Software has Skyfire Labs which develops mobile video optimisation and cloud applications on mobile devices.
The acquisition will involve an upfront consideration of $50m including $8m of cash on the Skyfire balance sheet.
Opera Software will also offer performance based earn-out payments over three years, including $26m in cash held in an escrow account.
Skyfire is known for its rocket optimizer software which allows mobile operators to optimise video and other multimedia content by leveraging cloud computing.
The rocket optimizer software claims to reduce network loads by 60% by reducing the size of video and other multimedia content.
The company also offers Skyfire Horizon, which is a mobile browser extension and toolbar platform that allows smartphone users to personalise their browser.
Opera Software CEO, Lars Boilesen, said Opera and Skyfire are a natural fit as both the companies have evolved beyond their browser roots.
"Skyfire adds capabilities to our portfolio around video, app optimization, smartphones and tablets, and strength in North America," Boilesen said.
"With video expected to consume over two-thirds of global mobile bandwidth by 2015, and as time spent on Android and iOS apps explodes, we are excited to extend Opera's solutions for operators."
Following the acquisition, Skyfire CEO Jeffrey Glueck will be EVP of the Operator Business for Opera, as well as CEO of Skyfire.
He would be responsible for the joint offerings for Opera across Opera Mini co-brand applications for Operators and Skyfire's product lines while Skyfire be subsidiary of Opera.
Jeffrey Glueck said Opera's relationship with over 100 carriers, global sales team, and delivery organisation can accelerate the global commercialisation of Skyfire's technology.
"Opera´s Mediaworks advertising unit with AdMarvel, Mobile Theory and 4th Screen Advertising will strengthen Skyfire Horizon by offering mobile operators a complete turnkey solution including ad optimization, ad sales, and rich analytics."
Both companies plan to develop new applications by leveraging one another's technology.
The acquisition is expected to close by 15 March, 2013.