Perion CEO Tal Jacobson. (Photo: Ohad Dayan PerionHivestack)
Perion Network Ltd., a publicly traded Israeli global advertising technology company, has bought out Hivestack, a global innovative full-stack programmatic digital out-of-home (DOOH) company, for $100 million paid upon closing and a 3-year employee retention and performance-based payment plan of up to US $25 million.
The performance-based payment plan is tied to EBITDA and contribution ex-TAC annual targets (as defined in the agreement) and will be paid in full if Hivestack generates an aggregate of approximately US$56 million of EBITDA and US$212 million of contribution ex-TAC in aggregate during 2024 through 2026 as shown in the table below. Perion financed the acquisition using cash on its balance sheet.
Just two years ago, Perion acquired Israeli video technology company Vidazoo for $93.5 million.
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DOOH advertising transforms ordinary public spaces into dynamic experiences, engaging audiences with eye-catching, personalized content in real-time. It harnesses cutting-edge technologies to target, deliver and measure unforgettable, immersive ads that connect brands with people on the go. With the acquisition of Hivestack, a programmatic DOOH technology innovator since 2017, Perion is entering an exciting market at its nascent stage, positioning the company to capitalize on its anticipated growth.
Founded in 2001, Perion is a global technology innovator in the digital advertising ecosystem, providing brands and publishers with an opportunity to unlock lucrative growth opportunities. The company boasts that its synergistic solutions serve all major digital advertising channels – including search, social, display, and video/CTV.
Perion declares that it is well-positioned to capitalize on” any shifting budget between the three main pillars of digital advertising ecosystem: search; social; and display/CTV. We’re in it all to win it all.”
Headquartered in Montreal, Canada, Hivestack and founded in 2017, Hivestack calls itself a leading global, full-stack, marketing technology company, powering the buy and sell side of programmatic digital out-of-home (DOOH) advertising. Hivestack was founded in 2017 with headquarters in Montreal, Canada, and operates in 32 countries across the globe and employs 154 people.
“We are excited about the acquisition of Hivestack, which both complements and advances our long-term growth strategy. Hivestack’s DOOH technology platform stands out by offering brands and advertisers what they crave the most: high-visibility creative, precise targeting, immediate impact, wide reach and measurement,” said Tal Jacobson, CEO of Perion. “In addition to advancing our diversification strategy, this transaction aligns with our objective to expand our technological capabilities and product offerings, and we will continue to pursue additional inorganic growth opportunities.”
