Perion to be acquired by India’s Affle for $420 million, marking a steep fall for a once-billion-dollar Israeli company
The all-cash deal values the Israeli adtech company at a fraction of its valuation just three years ago, despite $228 million in cash, deposits and marketable securities on its balance sheet. Perion’s shares will be delisted from Nasdaq and the Tel Aviv Stock Exchange.
Israeli adtech company Perion is being acquired by India’s Affle in an all-cash deal that values the company at approximately $420 million. Perion shareholders will receive $11.70 per share, a 34.5% premium over the closing price on October 30, the last trading day before the agreement was signed. But Perion also held $228.3 million in cash, short-term bank deposits and marketable securities as of September 30, making the headline price a particularly stark measure of the company’s decline. Just three years ago, Perion had a market capitalization of more than $1 billion and annual revenue approaching that figure.
The agreement, unanimously approved by Perion’s board, is expected to close in early 2027, subject to shareholder approval, U.S. antitrust clearance and other customary conditions. It includes a 40-day “go-shop” period, running through December 11, during which Perion can actively seek and consider competing proposals. If the transaction is completed, Perion will become a wholly owned subsidiary of Affle and its shares will be delisted from Nasdaq and the Tel Aviv Stock Exchange. The deal is not subject to a financing condition, with Citibank providing debt financing to support the acquisition.
Perion’s decline began in 2024, when Microsoft changed the terms of its search advertising arrangement with distribution partners, including Perion. The move sharply reduced the revenue Perion generated from its relationship with Bing, exposing the company’s dependence on a business model largely controlled by a much larger technology partner.
For years, Perion connected advertisers using search engines with consumers, earning a share of the advertising revenue generated through those referrals. The company’s partnership with Microsoft was central to that business. In 2023, search-related activities accounted for 46% of Perion’s total revenue, with Microsoft responsible for 85% of the revenue in that segment.
Microsoft’s changes to the way it compensated distribution partners reduced RPM, or revenue per thousand impressions, dealing a significant blow to Perion and its clients. The decline in search advertising revenue has proved difficult to offset, illustrating a persistent vulnerability in the adtech industry: a single policy or pricing change by a dominant platform such as Microsoft or Google can undermine an entire business model.
Perion’s annual revenue is projected to fall from nearly $900 million in 2024 to approximately $400 million by 2026, according to the figures provided. The company is also expected to swing into a loss during that period.
Under CEO Tal Jacobson, Perion has attempted to diversify beyond search advertising and reduce its dependence on Microsoft. Its efforts have included expanding into connected TV (CTV) and digital out-of-home (DOOH) advertising, developing its Perion One platform and investing in an AI-powered agent called Outmax. Those initiatives have yet to reverse the broader decline.
In announcing the acquisition, Jacobson described the deal as an opportunity to combine Perion’s advertising technology with Affle’s position in mobile marketing. He said the company would continue to develop its Perion One platform and Outmax AI agent, which are designed to optimize advertising performance across channels. Perion is expected to retain its brand and continue operating as a subsidiary after the acquisition.
Affle, an India-based global technology company, said the combination would expand its reach beyond mobile advertising into areas including retail media, connected TV and digital out-of-home advertising. The company said it sees opportunities to combine the businesses’ capabilities across the consumer journey, particularly in e-commerce, retail and healthcare.
The acquisition brings to a close more than two decades of activity for a company that has undergone several transformations. Founded in 1999 as IncrediMail, Perion initially became known for an email application that allowed users to personalize messages with animations, special effects and decorative elements.
The company went public on Nasdaq in 2006 and began trading on the Tel Aviv Stock Exchange in 2007. In 2011, it changed its name to Perion, marking a shift away from consumer software and toward the digital advertising business that would eventually become its main source of revenue.
