Athena Research • 20 Comments
Top Alpha • 11 Comments
Dec. 1, 2015, 10:41 AM
- Using proprietary ad formats, Undertone provides PC and mobile brand ad services for brands, ad agencies, and publishers. Perion (PERI +8.6%) has acquired the company for $130M in cash and the assumption of $50M in debt.
- Perion is paying $91M in cash up-front, $16M in 18 months, $3M in isntallments over the next 18 months, and $20M (bearing interest) in 2020. Undertone had revenue of $104M over the first 9 months of 2015, and expects 2015 revenue of $143M-$145M and adjusted EBITDA of $21M-$23M. The company gets 3/4 of its revenue from cross-screen and mobile ad solutions.
- Perion asserts the purchase "creates a differentiated independent ad tech platform with significant scale and profitability," adds "noteworthy" customer relationships, and broadens its ad product suite "with the addition of proprietary, high-impact creative formats." It follows last year's purchase of mobile ad management platform Grow Mobile, and the early-2015 acquisition of social media ad platform MakeMeReach.
- Earlier: Perion obtains $10M investment, $20M credit facility
Feb. 11, 2015, 4:01 PM
- MakeMeReach, based out of Paris, offers a platform for creating Facebook/Twitter ads and managing related campaigns. Perion (PERI -2.8%) is buying the company for an undisclosed sum.
- The acquisition follows Perion's 2014 purchase of mobile ad management platform Grow Mobile. Perion notes both MakeMeReach and Grow Mobile's solutions are available on either a self-serve or fully-managed basis, and that MakeMeReach gives Grow Mobile a new European office.
- The deal comes shortly after online ad campaign software provider Marin Software (MRIN +0.1%) agreed to buy MakeMeReach rival SocialMoov for $18.75M ($8M in cash, $10.75M in stock).
Sep. 17, 2014, 2:29 PM
- Reuters reports it and then takes it away, as it cites "a source with knowledge of the matter" as saying an earlier report that IAC/InteractiveCorp (IACI +0.1%) had offered to buy Perion Network (PERI +4.1%) was untrue.
- The earlier report said IAC has offered at least $500M for PERI, whose technology helps developers distribute apps and make money off them through advertising.
Sep. 17, 2014, 6:52 AM
Jun. 30, 2014, 12:14 PM
- Grow Mobile's platform offers app developers an integrated dashboard for launching, optimizing, and tracking the performance of ad campaigns campaign across multiple ad networks/exchanges. Clients include major mobile game developers such as Gameloft and Gree.
- Perion (PERI -0.8%) states Grow is already profitable and posted triple-digit Y/Y revenue growth last quarter. It's paying $17M up-front ($10M cash, $7M stock), and could pay up to $25M in performance earn-outs over the next 24 months.
- Grow's offerings will be added to Perion's newly-launched Lightspeed platform, which provides a slew of tools for developers looking to promote their apps. The purchase comes amid booming demand for mobile app install ads - Facebook's ads have been especially popular - from developers struggling to get noticed on the App Store and Google Play.
Jan. 2, 2014, 7:44 AM| Jan. 2, 2014, 7:44 AM
Sep. 16, 2013, 9:24 AM
- 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)
- Rumors about a deal have been around for a while; Perion investors were apparently hoping for a better valuation. PERI -7.4% premarket.
- 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.
Jul. 11, 2013, 11:23 AM
Perion Network (PERI +1%) edges higher a day after rallying 7% on a report Web site toolbar/mobile developer tool provider Conduit is in advanced talks to buy Perion for up to $200M, as part of a plan to split Conduit into two companies. Perion's market cap currently stands at $158M; its shares are up 46% YTD.| Jul. 11, 2013, 11:23 AM