Multitail is a command line tool primarily used to merge several log files. It is also capable of highlighting the output from one or more log files. In Ubuntu, you simply create or extend your multitail configuration in your home.

vi ~/.multitailrc

and define there your custom color scheme named yourcolorscheme

colorscheme:yourcolorscheme 
cs_re:red,,bold:.*ERROR.* 
cs_re:green:INFO 

When invoking multitail command, provide the designated color scheme (-cS) you want to use.

multitail -cS yourcolorscheme -f logs/server.log

Thanks to Gilles for the input.