Perion Network Agrees to $420 Million Acquisition by Mobile AI Firm Affle

Perion Network has agreed to be acquired by mobile artificial intelligence solutions provider Affle for $420 million. The transaction values each Perion share at $11.70, representing a 34.5% premium over the stock's closing price. Executives expect the acquisition to close in early 2027, after which Perion will be delisted from public trading.

Two years ago, in April 2023, Perion traded at a valuation of NIS 7 billion, but subsequently lost 82% of its market value. Today, the company's market capitalization stands at approximately NIS 1.05 billion, equivalent to roughly $360 million.

The company's valuation suffered following significant changes implemented by Microsoft in recent months. In February, Microsoft altered its advertising pricing mechanism on the Bing search engine for distribution partners, reducing Perion's advertising activity and average revenue per thousand impressions.

In June, Perion lowered its financial forecasts again after Microsoft announced the removal of several publishers from its distribution network, including some collaborating with Perion. Consequently, Perion stated that Bing-related revenues would account for less than 5% of total income during the second half of the year.