Perion, the media and internet company and maker of mobile user acquisition solution Growmobile, recently acquired cross-screen ad solutions provider, Undertone, for $180m.
Growmobile is Perion’s dedicated mobile app marketing solution
Josef Mandelbaum, CEO, Perion, says:
“We are very excited about this acquisition. In Undertone we have found a premium brand company of scale and profitability, with a differentiated sustainable position in the market. Together we firmly establish ourselves as the leader in delivering high-quality advertising solutions for publishers and brands. In addition to providing strong cash flow and revenue diversification, Undertone will add significant depth and talent to our company. With this acquisition we intend to become synonymous with engaging and impactful advertising solutions for brands and publishers.”
The deal is part of Perion’s efforts to become a global tech company and deliver high quality ad solutions to brands and publishers. It further grows Perion’s mobile advertising efforts. In November 2015, Perion announced Instagram ad support for its mobile ad platform Growmobile.
Corey Ferengul, CEO of Undertone, adds:
“We are thrilled to be joining Perion. I am excited that Undertone’s success with high-impact formats and great relationships with brands and agencies have brought us to this point in the company’s evolution. It’s a credit to all of the hard work of our team. It’s not often you find two companies as complementary as Undertone and Perion. We share the vision as to the industry’s need for a strong offering, focused on quality. I believe the combination of our companies will result in a broad offering of unique capability for brands and agencies to reach consumers and for publishers to monetize their content.”
JMP Securities LLC acted as the financial advisor and debt placement agent to Perion on the deal. The acquisition is being financed with $91m in cash from Perion, $16m in holdback payable over 18 months and another $3m to be paid in installments over the coming 18 months. A final $20m are due by 2020.