Affle plans developed-market CPCU expansion with Perion

Affle 3i Limited plans to combine Perion’s retail media, connected television and digital out-of-home channels in developed markets with its mobile conversion technology. The proposed US$ 42 crore acquisition would extend Affle’s cost per converted user model across an omnichannel advertising journey and serve thousands of advertisers in more than 100 countries after closing.

How would Perion expand Affle’s developed-market reach?

Perion would add an established developed-market presence across upper-funnel digital advertising channels to Affle’s deeper-funnel mobile marketing position in emerging markets. The combination is intended to give Affle an omnichannel platform for premium consumer-conversion use cases across diversified verticals, including e-commerce, retail and healthcare, in more than 100 countries.

The change is a segment expansion rather than a replacement of Affle’s existing mobile business. Affle describes its current position as artificial intelligence, or AI, powered performance-led consumer conversions in mobile marketing, while Perion brings retail media, connected television, or CTV, digital out-of-home, or DOOH, and other digital channels. Perion is headquartered in Tel Aviv, has a strong North American footprint, and is listed on Nasdaq and the Tel Aviv Stock Exchange.

Perion’s platform also supplies technology that Affle does not describe as part of its core mobile position. Perion One unifies segments built through three strategic acquisitions over the last three years, while Outmax is Perion’s proprietary AI agent for media execution and optimisation. Affle’s stated strategy is to integrate those capabilities with its Consumer Platform Tech Stack, proprietary audience intelligence and verticalised conversion solutions.

The comparison centres on where each company operates in the advertising journey. Perion’s channels are described as upper funnel, where brands build reach through CTV, retail media and DOOH, while Affle focuses on deeper-funnel mobile performance. Affle says bringing the two positions together would materially expand the total addressable market for its cost per converted user, or CPCU, business globally.

How would Affle link CTV and DOOH advertising to commerce outcomes?

Affle plans to use its CPCU model to pursue retail-commerce outcomes from Perion’s CTV and DOOH campaigns, described as CTV to Cart and DOOH to Cart. Under this model, Perion advertisers could use upper-funnel channels while Affle applies its conversion-led technology to the subsequent consumer journey.

CPCU is Affle’s differentiated cost per converted user business model, according to the announcement. Its Consumer Platform uses proprietary data, deep audience intelligence and agentic AI capabilities to optimise targeting and personalise user engagement. The proposed extension to Perion’s channels is intended to connect media activity on intelligent connected devices to a specified conversion outcome rather than limit the model to mobile placements.

Management said the integrated capabilities could generate greater return on investment, or ROI, for advertisers and publishers. Chairperson, Managing Director and Chief Executive Officer Anuj Khanna Sohum said the combination of Affle’s mobile marketing leadership and Perion’s retail media, CTV, DOOH and other digital channels could create synergies across the omnichannel consumer journey.

The announcement does not provide campaign-level conversion figures, revenue by channel or quantified synergy savings. It instead identifies the mechanism: Perion’s channels bring upper-funnel inventory and media execution, while Affle contributes conversion-focused technology, audience intelligence and a CPCU commercial model. The expected value to advertisers is therefore presented as a management objective, subject to integration and transaction completion.

What is the proposed Perion transaction and its funding?

Affle has agreed to acquire 100% of Perion’s issued and outstanding shares, including unvested equity awards under their vesting schedules, for US$ 11.70 per share in cash. The definitive agreement implies an equity value of about US$ 42 crore, and both companies’ boards have approved the transaction.

Perion does not have financial debt, according to the announcement. Affle plans to finance the acquisition through committed bank financing and available cash resources. CitiBank is serving as the financing bank, while LUMA Partners LLC is Affle’s financial adviser and Barnea Jaffa Lande & Co. is its legal adviser.

Because Perion is publicly held, Affle says transaction costs and related expenses would be recorded in its opening balance sheet. The legal structure is a reverse triangular merger in which a wholly owned Affle subsidiary would merge with and into Perion, with Perion surviving as a wholly owned subsidiary of Affle.

Perion would continue operating under the Perion brand after closing, but its ordinary shares would be delisted from Nasdaq and the Tel Aviv Stock Exchange. That structure preserves Perion’s operating brand while changing its ownership from public shareholders to Affle through the proposed merger.

What targets and conditions shape Affle’s integration plan?

Affle expects the transaction to close in early 2027, subject to regulatory approvals and approval by Perion shareholders. The agreement also provides Perion with a go-shop period before it seeks shareholder approval, meaning the proposed acquisition remains subject to specified closing conditions and competing-offer risk.

Management says Affle would be net debt free immediately after the acquisition and would have a fiscal 2028 revenue run rate above US$ 70 crore. These are forward-looking management expectations, not reported post-acquisition results. Affle also expects the deal to become accretive to earnings per share, or EPS, by the end of the first year after closing.

The planned CPCU transformation includes a review of Perion business contracts and an update to revenue recognition. Affle says this review, together with complementary technology and a profitability focus, is expected to improve Perion’s bottom-line performance through immediate strategic synergies. The announcement does not quantify the planned revenue-recognition changes, integration costs or expected earnings contribution.

Affle cites an acquisition record alongside annual organic growth of more than 20% and earnings before interest, taxes, depreciation and amortisation, or EBITDA, above 20% consistently. Perion, meanwhile, completed three strategic acquisitions in the last three years and consolidated those segments under Perion One. The proposed combination would join these two stated transformation approaches, but the filing cautions that anticipated benefits may not be realised when expected.

Conclusion

The proposed transaction would broaden Affle’s CPCU model from deeper-funnel mobile conversions in emerging markets into developed-market upper-funnel channels, including retail media, CTV and DOOH. Perion’s platform, North American footprint and Perion One technology would supply the distribution and execution layer for Affle’s stated aim of connecting omnichannel media activity to consumer and retail-commerce outcomes.

The next disclosed milestones are Perion’s go-shop period, shareholder approval, required regulatory approvals and the targeted early-2027 closing. If the deal closes, Affle plans to review Perion contracts, update revenue recognition and pursue a fiscal 2028 revenue run rate above US$ 70 crore, while targeting EPS accretion by the end of the first year after closing.