Affle agrees US$420 million Perion acquisition, targets 2027 close

Affle 3i Limited has agreed to buy all of Perion Network Limited for an implied equity value of approximately US$420 million in cash, offering US$11.70 a share. The transaction, signed on November 1, 2026, requires regulatory and shareholder approvals and is expected to close in early 2027.

What has Affle agreed to buy from Perion shareholders?

Affle has agreed to acquire 100% of Perion’s issued and outstanding shares, including unvested equity awards in line with their vesting schedules, for an implied equity value of approximately US$420 million. The November 1, 2026 announcement says Affle 3iL Ltd., an Israel-based wholly owned step-down subsidiary of Affle, signed the definitive merger agreement.

Perion shareholders would receive US$11.70 for each share under the all-cash proposal. Perion is dual-listed on Nasdaq and the Tel Aviv Stock Exchange, with operations mainly in the United States, Canada, Israel and Europe, giving the transaction a developed-market advertising technology footprint.

The transaction will use a reverse triangular merger structure. A wholly owned subsidiary of Affle will merge with and into Perion, with Perion surviving as a wholly owned subsidiary of Affle; Perion’s ordinary shares are expected to be delisted from Nasdaq and the Tel Aviv Stock Exchange after closing.

Why is Affle acquiring Perion?

Affle says the purchase is intended to extend its cost per converted user, or CPCU, business into developed markets by combining its mobile performance-marketing position with Perion’s upper-funnel advertising channels. Those channels include retail media, connected television, or CTV, digital out-of-home, or DOOH, and other digital formats.

The companies have different stated market positions by funnel and geography. Affle describes its existing business as deeper-funnel, artificial intelligence-powered consumer conversions in emerging markets, while Perion has an established developed-market presence in upper-funnel channels, including CTV, retail media and DOOH.

Perion has changed its operating structure over the past three years by completing three strategic acquisitions and unifying the expanding businesses under its Perion One platform. Affle plans to apply its verticalised CPCU model to retail-commerce outcomes described as CTV-to-cart and DOOH-to-cart conversions for Perion advertiser campaigns.

Affle says the combined operation would serve thousands of advertisers across diversified industry verticals in more than 100 countries after completion. Management identified e-commerce, retail and healthcare as sectors where it sees scope to combine Affle’s mobile conversion capabilities with Perion’s omnichannel advertising products.

How will Affle fund and account for the Perion transaction?

Affle plans to fund the approximately US$420 million acquisition through committed bank financing and available cash resources. CitiBank is the financing bank named by Affle, while LUMA Partners LLC is financial adviser and Barnea Jaffa Lande & Co. is legal adviser to Affle.

Perion had cash of approximately US$228 million and no financial debt as of September 30, 2026. Affle says it would be net debt-free immediately after the acquisition, which is a forward-looking outcome dependent on completion and the planned financing structure.

Because Perion is publicly held, Affle says transaction costs and related expenses would be recorded in its opening balance sheet. This accounting treatment is separate from the US$11.70-per-share consideration paid to shareholders under the proposed merger.

Management also plans to review Perion’s revenue recognition and business contracts during the intended CPCU strategic transformation. Affle expects the review, complementary technologies and immediate strategic synergies to improve bottom-line performance, but it did not report post-transaction financial results.

What targets has Affle disclosed for the combined business?

Affle has stated that the combined business would have a financial year 2028 revenue run rate of more than US$700 million. It also expects the acquisition to become accretive to earnings per share, or EPS, by the end of the first year after closing, subject to the planned technology, contract and business-model changes.

The company intends to use its artificial intelligence-powered Consumer Platform technology stack, proprietary audience intelligence and CPCU model across the enlarged business. Affle says its earlier acquisition approach has supported more than 20% annual organic growth and more than 20% earnings before interest, tax, depreciation and amortisation, or EBITDA, consistently.

The announcement does not provide a comparable Perion revenue or EBITDA figure against Affle’s stated financial year 2028 run-rate target. Instead, it describes Perion’s contribution as its Perion One platform and Outmax artificial intelligence agent, which operate across CTV, commerce, retail media, social, digital and DOOH environments.

Affle’s Chairperson, Managing Director and Chief Executive Officer Anuj Khanna Sohum said the acquisition would support the company’s 10X decadal growth vision. That objective is management’s stated plan, rather than a reported outcome from the proposed merger.

When can the Affle-Perion acquisition close?

The acquisition is expected to close in early 2027, subject to regulatory approvals and approval from Perion shareholders. Both companies’ boards have approved the agreement, but that approval does not itself complete the purchase of Perion’s shares.

The agreement includes a go-shop period for Perion before it seeks shareholder approval. Affle’s disclosure says competing offers, unsatisfied closing conditions, delayed regulatory permissions and a possible termination of the definitive agreement could affect whether the deal completes on the announced terms or at all.

Perion is expected to continue operating under the Perion brand following closing. The proposed delisting from Nasdaq and the Tel Aviv Stock Exchange would take place upon completion of the reverse triangular merger, rather than when the agreement was announced on November 1, 2026.

The disclosure also identifies risks to Perion’s ability to retain personnel and maintain customer, supplier and other business relationships while the deal is pending. It further notes that the planned benefits, including the financial year 2028 run-rate and EPS expectations, may not be realised when expected.

Conclusion

The proposed US$420 million all-cash transaction would give Affle full ownership of Perion and combine Affle’s mobile-focused CPCU model with Perion’s retail media, CTV and DOOH advertising technology. The principal announced terms are US$11.70 per Perion share, approximately US$228 million of Perion cash at September 30, 2026, and no Perion financial debt.

The next events are Perion’s go-shop period, shareholder vote and required regulatory approvals, with an early-2027 closing expectation. If the merger closes, Affle plans a CPCU-led transformation of Perion and has set a financial year 2028 revenue run-rate target above US$700 million, alongside an expectation of EPS accretion by the end of the first post-closing year.