Affle Agrees to Buy Perion for US$420 Million in Cash

By Daniel Okafor

Perion said Affle 3iL Ltd. signed a definitive agreement on November 1, 2026, to acquire Perion Network Ltd. for US$11.70 a share in cash. Perion put the implied equity value at about US$420 million.

The price represents a 34.5% premium to Perion’s October 30, 2026 closing price, the last trading session before signing, Perion said. Perion identified Affle 3iL Ltd. as the Israel-based step-down subsidiary of Affle 3i Limited.

What does the deal change?

Perion said the agreement covers 100% of its issued and outstanding shares, including unvested equity awards that continue under their vesting schedule.

Perion said the structure uses a reverse triangular merger, in which a wholly owned Affle subsidiary merges with and into Perion. Perion will survive as a wholly owned Affle subsidiary.

Perion said its ordinary shares will cease trading on Nasdaq and the Tel Aviv Stock Exchange after closing. The company will keep the Perion brand and remain headquartered in Tel Aviv. Perion and its subsidiaries mainly operate in the United States, Canada, Israel and Europe.

What does Affle gain from Perion?

Affle said the purchase will scale its cost-per-converted-user, or CPCU, business across developed markets. Perion supplies upper-funnel digital advertising channels, including retail media, connected TV and digital out-of-home.

Affle contributes deeper-funnel mobile marketing and AI-powered consumer conversions in emerging markets. Together, Affle said the assets will form a global omnichannel platform serving thousands of advertisers across diversified industry verticals in more than 100 countries.

Affle expects its workforce in developed markets to expand by roughly 600 employees after closing.

Affle’s chairperson, managing director and chief executive officer Anuj Khanna Sohum said in the company’s stock-exchange filing:

“This is an important step in strengthening our CPCU business across Developed Markets and advancing our 10X decadal growth vision.”

Sohum said the combination should generate synergies across the omnichannel consumer journey.

Perion CEO Tal Jacobson called the agreement an important milestone. He said Perion had become a differentiated advertising technology company built around the Perion One platform and Outmax AI agent. Perion said the company completed three acquisitions over the last three years and unified those businesses under Perion One.

Eyal Kaplan, chairman of Perion’s board, said the proposed transaction offered compelling value and greater financial certainty for Perion shareholders.

How is the acquisition financed?

Citibank is providing debt financing, so the transaction carries no financing condition, Perion said. Affle said it will combine committed bank financing with available cash resources.

Because Perion is publicly held, Affle said it will record transaction costs and related expenses on its opening balance sheet. Affle’s filing says the roughly US$420 million consideration includes continuing equity awards granted as of the agreement date. It excludes transaction costs and related expenses incurred by both parties.

Perion reported US$228.3 million in cash, cash equivalents, short-term bank deposits and marketable securities as of September 30, 2026. Perion also reported no financial debt.

During the third quarter of 2026, Perion used US$26.0 million under its share repurchase program and US$10.9 million to acquire PRN.

Affle’s filing lists Perion’s calendar-year revenue and profit after tax as follows:

• 2023: Revenue of US$743.2 million and profit after tax of US$115.0 million.
• 2024: Revenue of US$498.3 million and profit after tax of US$12.6 million.
• 2025: Revenue of US$439.9 million and a loss after tax of US$7.9 million.

Affle said it would be net debt free immediately after closing. It targets a FY2028 revenue run rate above US$700 million.

Affle expects to revise Perion’s revenue recognition during its planned CPCU transformation, including a review of business contracts. The company also expects the acquisition to become accretive to earnings per share by the end of the first year after closing.

Perion named Canaccord Genuity as its exclusive financial adviser and Meitar Law Offices as legal counsel. Affle named LUMA Partners as financial adviser and Barnea Jaffa Lande & Co. as legal counsel.

What must happen before closing?

Both boards approved the transaction, and Perion’s board did so unanimously, the companies said. Closing still requires Perion shareholder approval, expiration or termination of the Hart-Scott-Rodino waiting period, and other closing conditions.

Affle disclosed that the deal is not a related-party transaction. Its promoter group holds no interest in Perion.

The merger agreement gives Perion and Canaccord Genuity a 40-day go-shop period ending at 11:59 p.m. Israel time on December 11, 2026. During that period, they may actively solicit and consider alternative acquisition proposals.

Perion said it does not plan to disclose go-shop developments unless it determines disclosure is appropriate or required. The companies expect to close in early 2027. Affle gave an indicative completion period of 180 days, subject to the go-shop and shareholder approval.

For shareholders, the next checkpoints are the December 11 go-shop expiry, Perion’s vote and antitrust clearance. If those conditions clear, the companies expect an early 2027 close and Affle’s stated path toward more than US$700 million of FY2028 revenue.