The all-stock transaction will give Conduit shareholders 81% of the new company, and Perion (PERI) shareholders 19%. It's expected to close in January '14, provided Period shareholders vote for the deal in November. (PR)
For the 12 months ending June 30, Perion and Conduit's toolbar unit (Client Connect) had combined revenue of $367.2M, of which 24% came from Perion's e-mail, imaging, and IM apps. Combined net income was $92.5M, of which Perion accounted for 17%.
Both companies depend on deals with search engines to monetize their apps/services. Perion and Conduit assert the deal will yield "a top-three search distribution company responsible for over 2% of searches in the U.S.," and also provide other ad deal synergies.