Israeli media and Internet services developer Perion Networks Inc. (Nasdaq:PERI: TASE:PERI) has acquired US digital ads solution company Undertone for $180 million. Perion's share price rose 8% on the Tel Aviv Stock Exchange (TASE) after the announcement, and rose 8.6% on the opening on Nasdaq, giving a market cap of $171 million.
The acquisition of Undertone is part of Perion's expansion strategy in recent years focused on digital advertising. At the start of 2015, Perion acquired the French mobile ad startup MakeMeReach for $10-15 million and last year it acquired US company Grow Mobile for $17 million.
The acquisition of Undertone will allow Perion to market a unique and independent digital ad platform with high potential profitability. The merger will also give Perion a foothold in the mobile ad world and let it enlarge its products pipeline.
Perion CEO Josef Mandelbaum said, “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.”
Perion provides online publishers and app developers advanced technology and data-driven solutions to monetize their application or content and expand their reach to larger audiences.
Perion also announced today that it has completed a $10 million equity private placement from JP Morgan and secured a credit facility of $20 million from LeumiTech, the technology banking arm of Bank Leumi (TASE: LUMI).
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2015
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