developing· Economy· Updated
Israeli Ad-Tech Firm Perion Sold to Indian Company for $420 Million
The Israeli advertising technology company Perion Network has agreed to be acquired by the India-based ad-tech firm Affle for $420 million (approximately 1.32 billion shekels). The transaction, which is subject to standard closing conditions and regulatory approvals, is expected to be completed in the second half of 2024, according to Calcalist. The deal offers Perion investors a 34.5% premium per share.
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What happened
- 01The Israeli ad-tech company Perion Network has agreed to be acquired by India's Affle for $420 million.
- 02The acquisition offers Perion Network investors a 34.5% premium per share, according to Calcalist.
- 03The transaction is expected to close in the second half of 2024, pending regulatory approvals.
- 04Perion Network lost approximately 80% of its valuation since April 2023, according to TheMarker.
- 05The decline followed the termination of a partnership with Microsoft that had generated 40% of Perion's revenue.
- 06Perion's new ventures in smart TV advertising and digital billboards failed to offset the loss of the Microsoft deal.
Perion Network, led by CEO Tal Jacobson, is listed on NASDAQ and specializes in digital advertising solutions, including search, social media, and mobile advertising. Affle, which is listed on the Indian stock exchange, aims to expand its global digital advertising reach and capabilities through the acquisition.
According to TheMarker, the sale price represents a significant drop from Perion's previous valuation, as the company lost about 80% of its value since April 2023. This decline was primarily driven by the termination of its lucrative partnership with Microsoft, which previously accounted for approximately 40% of Perion's revenue. Under that agreement, Perion distributed Microsoft's Bing search engine to its clients, but Microsoft changed its pricing algorithm for advertising revenue in mid-2023.
To offset the loss of the Microsoft collaboration, Perion had ventured into new sectors, including advertising on smart TVs (CTV), retail media, and digital billboards. However, according to TheMarker, these new ventures were insufficient to compensate for the financial impact of losing the Microsoft deal.
Summarized by baba from the reports of 3 newsrooms. Updated
Latest report: TheMarker. Read TheMarker’s originalThe coverage
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