Perion Network Ltd. (NASDAQ: PERI) announced today that it has entered
into a definitive agreement to acquire Grow Mobile, Inc. Grow Mobile
provides an innovative platform for mobile advertising that enables
developers to buy, track, optimize, and scale user acquisition campaigns
from a single dashboard.
Grow Mobile will become part of Perion Lightspeed, which was recently
created to address the advertising needs of mobile app developers, and
will enable Perion Lightspeed to provide a more comprehensive technical
and platform solution for app developers.
Grow Mobile was founded less than two years ago, and is already
profitable. This past year, it managed advertising campaigns in excess
of $20 million with triple digit year-over-year top-line growth in the
The mobile advertising market is expected to see significant growth in
the coming years, however, it remains a nascent market, highly
fragmented and inefficient. An app developer seeking to advertise a
mobile app today must connect to numerous traffic sources, each with its
own stand-alone integration process, tracking systems, and dashboards.
Moreover, the developer has to analyze data from each traffic source
separately in order to optimize spend and increase reach. Perion
Lightspeed and Grow Mobile together provide app developers a
one-of-a-kind, comprehensive solution to this problem.
"Acquiring Grow Mobile will accelerate Perion Lightspeed's time to
market, making the vision come to life faster and in a more robust
offering," said Tomer Pascal, General Manager of Perion Lightspeed.
"Adding Grow Mobile's toolset to our development efforts positions
Perion as a leader in mobile distribution platforms, giving app
developers powerful and simple tools and access to real-time data and
analytics tools, enabling them to thrive and succeed in the mobile
"This agreement is a milestone event for Grow Mobile and we are excited
to become part of the Perion team," added Brendan Lyall, Co-Founder and
Chief Executive Officer of Grow Mobile. "Today we are part of something
bigger. Together we can yield better results for our clients and invest
even more efforts in developing tomorrow's mobile ad solutions."
Mr. Lyall, AJ Yeakel and Minglei Xu (the other co-founders), as well as
the entire Grow Mobile team, will remain with the Company. Mr. Lyall is
the former Head of User Acquisition & Business Development at Storm8.
Mr. Yeakel is the former head of Mobile Marketing and Revenue at Zynga
and Mr. Xu was Chief Architect and co-founder of mobile gaming company
Wild Needle, prior to being sold to Zynga. Together, they bring to
Perion extensive experience and expertise in the mobile ad market.
The intial purchase price is $17 million, of which $10 million in cash
and $7 million in equity which will be paid at closing. The total
purchase price may reach up to $42 million, with an earn-out component
that allows for an additional $25 million in cash and equity to be paid
over the next 24 months, contingent upon achieving certain revenue and
Subject to customary closing conditions, the transaction is expected to
close early in the third quarter. The acquisition will be funded from
cash on hand and management anticipates the acquisition to be accretive
to Perion's 2014 financial results.
About Perion Network Ltd.
Perion powers innovation. Perion is a global performance-based media
and Internet company, providing 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. Our
leading software monetization platform, Perion
Codefuel, empowers digital businesses to optimize installs, analyze
data and maximize revenue. Our app promotion platform, Perion
Lightspeed, enables developers to make wise decisions on where to
spend advertising budgets to produce the highest yield and the most
visibility. The Perion team brings decades of experience, operating and
investing in digitally-enabled businesses, and we continue to innovate
and create value for the app ecosystem. More information about Perion
may be found at www.perion.com. Follow
Perion on Twitter @perionnetwork.
About Grow Mobile, Inc.
Grow Mobile simplifies the complexity of mobile app advertising,
enabling companies to rapidly acquire new customers, increase user
engagement and maximize revenue. The company's
proprietary mobile advertising management platform streamlines the
process of buying ads across multiple channels, with an integrated
solution suite that delivers sophisticated reports for quickly analyzing
results, optimizing performance and increasing ROI. Grow Mobile is
headquartered in San Francisco with offices in New York and is
venture-backed by Signia Venture Partners and Bessemer Venture Partners.
For more information, visit www.growmobile.com.
Follow us on Twitter @growmobile
Forward Looking Statements
This press release contains historical information and
forward-looking statements within the meaning of The Private Securities
Litigation Reform Act of 1995 with respect to the business, financial
condition and results of operations of Perion. The words "will",
"believe," "expect," "intend," "plan," "should" and similar expressions
are intended to identify forward-looking statements. Such statements
reflect the current views, assumptions and expectations of Perion with
respect to future events and are subject to risks and uncertainties.
Many factors could cause the actual results, performance or achievements
of Perion to be materially different from any future results,
performance or achievements that may be expressed or implied by such
forward-looking statements, or financial information, including, among
others, the failure to realize the anticipated benefits of the
transaction; risks entailed in integration, including employee retention
and customer acceptance; the risk that the transaction will divert
management and other resources from the ongoing operations of the two
businesses or otherwise disrupt the conduct of those businesses,
potential litigation associated with the transaction, and general risks
associated with the business of Perion, including changes in the markets
in which the businesses operate and in general economic and business
conditions, loss of key customers, unpredictable sales cycles,
competitive pressures, market acceptance of new products, inability to
meet efficiency and cost reduction objectives, changes in business
strategy and various other factors, whether referenced or not referenced
in this press release. Various other risks and uncertainties may affect
Perion and its results of operations, as described in reports filed by
the Company with the Securities and Exchange Commission from time to
time, including its annual report on Form 20-F for the year ended
December 31, 2013. Perion does not assume any obligation to update these
Source: Perion Network Ltd.
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