AppsFlyer in advanced talks for $1 billion to $2 billion sale

Israeli mobile attribution company AppsFlyer is in advanced negotiations to be sold for about $1 billion to $2 billion, according to Calcalist. The likely buyer is expected to be a private equity fund. AppsFlyer has chosen Goldman Sachs to handle the process, after working with the bank on a recent sale effort. The company has not raised new capital since 2020, when it was valued at $2 billion, and it did not comment on the report.

This would be AppsFlyer’s second attempt at a deal. In March, it stopped talks with Apollo Global Management, together with Israeli private equity firm Fortissimo Capital, over a proposed transaction that would have given Apollo a controlling 50% to 60% stake through its debt fund and valued the company at $1.9 billion. The talks reportedly collapsed after software valuations fell and the buyers sought additional protections. AppsFlyer’s board and Goldman Sachs rejected the revised terms and halted the process.

Founded by Oren Kaniel and Reshef Mann, AppsFlyer had once considered an IPO at a $4 billion to $5 billion valuation. Instead, slower annual growth, now estimated at 10% to 15%, and difficult conditions in digital advertising led the company to explore a sale. AppsFlyer says it generates about $500 million in annual recurring revenue, is profitable, and produces positive cash flow. It employs about 1,300 people after laying off roughly 7% of staff last year.

If the deal closes at the current valuation range, longtime investors such as Pitango and Komerco would see a strong return, while General Atlantic, which led the company’s last $210 million financing in 2020 at a $2 billion valuation, would likely realize only a modest return.