Perion Network Ltd. (Nasdaq:PERI: TASE:PERI) today completed its acquisition of Conduit’s ClientConnect business in an all-stock transaction.
"This transaction uniquely positions Perion as a leader in the software distribution ecosystem. Combined, we are focused on providing a variety of intelligent data-driven solutions to help publishers increase distribution and monetize their apps. Our vast network of developer partners, our many end users and our shareholders will benefit from our increased scale, driving exceptional reach and strong market recognition as we emerge today as one of the largest global digital distribution and product companies in the world," said Perion CEO Josef Mandelbaum, Perion’s CEO.
Conduit Ltd. spun off its ClientConnect business, which includes its monetization and distribution platform for publishers and developers to become a wholly owned subsidiary of Perion.
Perion issued 54.8 million shares to ClientConnect’s shareholders and 2.8 million options to ClientConnect’s option holders, based on Perion’s fully diluted share count at closing. Conduit's shareholders now own 81% of Perion, and Perion's current shareholders own 19% of the company.
Perion’s shareholders overwhelmingly voted in favor of the acquisition of ClientConnect in November 2013. Various standstill provisions were put in place for major shareholders and no single shareholder owns more than 15% of the shares outstanding post-closing. Key shareholders include Benchmark Capital and JPMorgan Chase & Co. All former ClientConnect shareholders will be subject to contractual lock-up provisions prohibiting any public resale of their Perion shares for six months and imposing conditional resale restrictions in the subsequent 18 month.
Perion's share price rose 5% by mid-afternoon on the TASE today to NIS 44.62, and rose 5.4% in premarket trading on Nasdaq to $12.78, giving a market cap of $150 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 2, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014