Perion Network Ltd. (NASDAQ: PERI) said that it has entered into a definitive agreement to acquire Grow Mobile, Inc.
Grow Mobile will become part of Perion Lightspeed, which was recently created to address the advertising needs of mobile app developers, and will enable Perion Lightspeed to provide a more comprehensive technical and platform solution for app developers.
Grow Mobile was founded less than two years ago, and is already profitable. This past year, it managed advertising campaigns in excess of USD20m with triple digit year-over-year top-line growth in the last quarter.
The initial purchase price is USD17m, of which USD10m in cash and USD7m in equity which will be paid at closing. The total purchase price may reach up to USD42m, with an earn-out component that allows for an additional USD25m in cash and equity to be paid over the next 24 months, contingent upon achieving certain revenue and profit milestones.
Subject to customary closing conditions, the transaction is expected to close early in the third quarter. The acquisition will be funded from cash on hand and management anticipates the acquisition to be accretive to Perion´s 2014 financial results.
Perion is a global performance-based media and Internet company, providing online publishers and app developers advanced technology and a variety of intelligent, data-driven solutions to monetise their application or content and expand their reach to larger audiences, based on its own experience as an app developer. Its website is at www.perion.com and on Twitter @perionnetwork.
Grow Mobile simplifies the complexity of mobile app advertising, enabling companies to rapidly acquire new customers, increase user engagement and maximize revenue. For more information, visit www.growmobile.com and on Twitter @growmobile.