Perion Network Acquires Advertising Solutions Firm Undertone

Israel-based Perion Network has acquired Undertone, a leader in high-impact, cross-screen advertising solutions, for $180 million in total enterprise value. The deal will immediately continues the strategic transformation of Perion into global tech company delivering high-quality advertising solutions in the market.

Josef Mandelbaum, CEO of Perion Network, said in a statement: “We are very excited about this acquisition”, and also added that: “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.”

Corey Ferengul, CEO of Undertone, said in a statement: “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.”

Founded in 1999 and based in New York City, Perion Network Ltd. is a global performance-based media and software company providing engagement and monetization solutions for web and mobile based digital businesses. Perion provides online publishers and app developers advanced technology and a variety of intelligent, data-driven solutions to monetize their application or content and expand their reach to larger audiences, based on its own experience as an app developer. Perion’s platform include: Codefuel, which empowers digital businesses to optimize installs, analyze data and maximize revenue, and Growmobile, which enables app marketers to advertise across the industry’s top-performing traffic sources, including Facebook, Twitter and Google.

Founded in 2002 and based in New York City, Undertone is the leader in high-quality, cross-screen digital brand advertising at scale. It offers online advertising display and video advertising services that allows businesses to target ads to specific locations, demographics and keywords. The company’s proprietary high-impact advertising formats enable brands to stand out online and engage users with stunning creative experiences on top mobile and desktop properties. It clients include AccuWeather and Britannica.

JMP Securities LLC served as exclusive financial advisor and debt placement agent to Perion, and  LionTree Advisors served as a capital markets advisor to Perion. Goldfarb Seligman & Co. LLP served as legal advisor to Perion, while Kramer Levin LLP for US legal advice. 

Morgan Stanley & Co. LLC served as exclusive financial advisor to Undertone, and Goodwin Proctor LLP served as Undertone’s legal counsel.

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