Affle to acquire Perion, to scale its CPCU business across Developed markets

(BSE:542752, NSE:AFFLE) Affle 3i Limited announced that its Israel-based step-down subsidiary, Affle 3iL Ltd., has signed a definitive agreement to acquire all outstanding shares (including unvested equity awards as per vesting schedule) of Perion Network Limited (NASDAQ:PERI, TASE:PERI) at US$ 11.70 per share in an all-cash transaction, implying an equity value of approximately US$ 420 million. The Boards of Directors of both Affle and Perion have approved the transaction, which is subject to closing conditions including regulatory approvals and approval by Perion shareholders. The agreement provides for a go-shop period for Perion before seeking shareholder approval. Perion does not have any financial debt and, as of September 30th, 2026, had a cash balance of approximately US$ 228 million. Affle plans to fund the acquisition through a combination of committed financing from banks and available cash resources. The transaction will be effected by way of a reverse triangular merger, with a wholly-owned subsidiary of Affle merging into Perion, resulting in Perion becoming a wholly-owned subsidiary of Affle. Upon closing, Perion's ordinary shares will be delisted from Nasdaq and the Tel Aviv Stock Exchange, but Perion will continue to operate under its own brand. The transaction is expected to close in early 2027, subject to closing conditions. Affle expects to be net debt free immediately post-acquisition and projects a FY2028 revenue run rate of over US$ 700 million. Post-acquisition, Affle plans to update Perion's revenue recognition in view of the planned CPCU strategic transformation, including a review of business contracts, which is expected to lead to significantly improved bottom line performance based on immediate strategic synergies. Affle expects the acquisition to be accretive to earnings per share by the end of the first year following closing. LUMA Partners LLC is serving as financial advisor to Affle, Barnea Jaffa Lande & Co. as legal advisor, and CitiBank as the financing bank. Anuj Khanna Sohum is the Chairperson, MD and CEO of Affle, and Tal Jacobson is the CEO of Perion. Affle has delivered over 20% annual organic growth and over 20% EBITDA consistently. The combined business will strengthen AI-powered consumer conversions, expand global scale, and deliver measurable ROI for advertisers and sustained long-term value creation. Perion is an Israeli technology company headquartered in Tel Aviv, with a strong North American footprint and dual listings on NASDAQ and the Tel Aviv Stock Exchange. Over the last three years, Perion has completed three strategic acquisitions and unified these segments under its Perion One platform.