Perion Network Ltd. (NASDAQ: PERI), a Tel Aviv, Israel and NY-based performance-based media and Internet company, acquired Undertone, a New York, NY-based provider of cross-screen advertising solutions, for $180m in total enterprise value.
The deal will be financed at closing with:
– approximately $91m of cash from Perion,
– an additional $16m as a holdback, payable in 18 months,
– $3m payable in installments over the next 18 months and
– $20 million, bearing interest, due in 2020.
In addition, the company has entered into a new long-term credit agreement with the existing Undertone lenders, SunTrust Robinson Humphreys, Silicon Valley Bank and Comerica Bank, for $50m.
The acquisition allows Perion to continue its strategic evolution into a global technology company delivering advertising solutions to brands and publishers.
Led by CEO Josef Mandelbaum, Perion provides online publishers and app developers with advanced technology and a variety of solutions to monetize their application or content and expand their reach to larger audiences, based on its own experience as an app developer. The company’s software monetization platform, Codefuel, allows digital businesses to optimize installs, analyze data and maximize revenue.
The mobile marketing unit, Growmobile, enables app marketers to advertise across the industry’s top-performing traffic sources, including Facebook, Twitter and Instagram (by MMR) and Google.
Led by Corey Ferengul, CEO, Undertone provides cross-screen digital brand advertising solutions. Its proprietary advertising formats aim to enable brands to engage users via attention-grabbing advertisements on every device through traditional and programmatic methods while protecting advertisers from digital advertising fraud.