Digital advertising solutions company Perion Network Ltd. (Nasdaq:PERI: TASE:PERI) has announced the signing of an agreement to buy the assets of Pub Ocean, described as "a rapidly-growing digital publisher-focused technology company with scalable content distribution and real-time revenue analytics technology." Perion's announcement states that "Pub Ocean offers significant and immediate synergies to ContentIQ (CIQ), which Perion acquired in January, driving incremental revenue opportunities and enhanced profitability."
The acquisition, which is expected to close in the coming days, is for an aggregate cash consideration of up to $22 million, of which $4 million will be paid upon signing, $17 million as earn-out tied to financial targets over a two-year period and $1 million for two years of retention. The acquisition is expected to be immediately accretive and contribute more than $25 million in revenue and $5 million in adjusted EBITDA to Perion in the first 12 months.
Chris Ingham Brooke, who founded Pub Ocean, will become executive vice president at CIQ. Pub Ocean will be integrated into CIQ with the express intent of building a "new media supply chain."
"Pub Ocean is a strategically important acquisition for Perion, as we advance the buildout of a Synchronized Digital Branding solution across all digital channels," said Doron Gerstel, CEO of Perion. "We see meaningful synergies between CIQ and Pub Ocean. We could not be more thrilled to welcome Pub Ocean and its founder Chris into the Perion and CIQ family."
"We’ve had many suitors over the years, but no one has come close to Content IQ and Perion in terms of a strategic opportunity, vision and shared values. I’m looking forward to the next chapter and building a bigger company with all the resources and capabilities of Perion and Content IQ," said Chris Ingham Brooke.
Perion Network has a market cap of $151 million.
Published by Globes, Israel business news - en.globes.co.il - on July 22, 2020
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