Technology firm Affle 3i Ltd on Sunday (November 1) said it will acquire Israel-based advertising technology company Perion Network Limited for an implied equity value of approximately $420 million, with Perion shareholders set to receive $11.70 per share in an all-cash transaction, the company announced on Sunday (November 1).
Affle’s Israel-based step-down subsidiary, Affle 3iL Ltd., has signed a definitive agreement to acquire 100% of Perion’s issued and outstanding shares, including unvested equity awards as per their vesting schedule.
The transaction has been approved by the boards of directors of both companies and is subject to closing conditions, including regulatory clearances and approval from Perion shareholders. The deal includes a go-shop period for Perion before seeking shareholder approval and is expected to close in early 2027.
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Perion is an Israeli technology company headquartered in Tel Aviv, with a significant presence in North America and listings on Nasdaq and the Tel Aviv Stock Exchange. Its artificial intelligence (AI)-powered technology platform offers omnichannel advertising solutions across retail media, connected TV (CTV), digital out-of-home (DOOH) and other digital channels.
Over the last three years, Perion has completed three strategic acquisitions and brought its expanding business segments together under the Perion One platform.
Strategic Rationale
The acquisition will combine Perion’s presence across upper-funnel digital advertising channels in developed markets with Affle’s capabilities in deeper-funnel mobile marketing and AI-powered performance-led consumer conversions in emerging markets.
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Affle said the deal would expand the addressable market for its cost per converted user (CPCU) business globally. Its CPCU-powered solutions are expected to enable consumer conversion outcomes such as CTV-to-Cart and DOOH-to-Cart retail commerce for Perion’s advertisers.
Following the acquisition, Affle expects to operate a global omnichannel platform serving thousands of advertisers across diversified industry verticals in more than 100 countries.
Perion’s Financial Position
Perion has no financial debt and had a cash balance of approximately $228 million as of September 30, 2026. Affle plans to finance the acquisition through a combination of committed bank financing and available cash resources.
The transaction will be executed through a reverse triangular merger, under which a wholly owned subsidiary of Affle will merge with Perion, with Perion surviving as a wholly owned subsidiary of Affle.
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Following the completion of the transaction, Perion’s ordinary shares will be delisted from Nasdaq and the Tel Aviv Stock Exchange, while the company will continue operating under the Perion brand.
Affle said it would remain net debt-free immediately after the acquisition and expects to achieve a revenue run rate of more than $700 million in financial year 2028.
Earnings Outlook
Affle plans to review Perion’s business contracts and update its revenue recognition in line with the proposed strategic transformation towards the CPCU model. The company expects the planned business model changes, technology synergies and focus on profitability to improve Perion’s bottom line.
Affle expects the acquisition to become accretive to earnings per share (EPS) by the end of the first year after the transaction closes.
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The company said its acquisition strategy focuses on businesses that complement its technology capabilities, expand customer and market access, and can be integrated into its platform ecosystem. Affle also cited its track record of delivering more than 20% annual organic growth and maintaining EBITDA growth of over 20%.
Advisors
LUMA Partners LLC is serving as the financial advisor to Affle, while Barnea Jaffa Lande & Co. is its legal advisor. Citibank is the financing bank for the transaction.
Anuj Khanna Sohum, the Chairperson, MD and CEO of Affle, said, “We are excited to welcome the Perion family on board as we continue to strengthen the foundations of our AI-powered Consumer Platform Tech Stack. Through this acquisition, we are bringing together our highly complementary tech capabilities, innovation culture and unique IP to global scale.
The combination of Affle’s strong leadership in mobile marketing with Perion’s established presence across Retail Media, CTV, DOOH and other digital channels will enable us to drive greater synergies across the omnichannel consumer journey on intelligent connected devices.”
Tal Jacobson, CEO of Perion, said, “Over the past several years, we have transformed Perion into a differentiated advertising technology company, driven by the strength of our team, technological innovation, and our focus on measurable business outcomes for advertisers.
Through Perion One and our Outmax AI agent, we continue to advance how advertising performance is executed and optimised across channels to ensure the best ROI on media investments for our customers. Our agreement with Affle marks an important milestone for Perion.”
Shares of Affle 3i Ltd ended at ₹1,345.00, down by ₹37.60, or 2.72%, on the BSE.