Perion Network Acquires SweetPacks For $41 Million
Perion Network is acquiring SweetIM for $41 million. Around $2 million will be paid for with shares and the rest will be in cash. SweetIM is known for developing the SweetPacks IM product. SweetIM’s founders will get $32.5 million up-front and $7.5 million based on performance.
SweetPacks CEO Nadav Goshen will be joining Perion as the new COO of the company. The SweetPacks SweetIM app will become the byword in emoticons on Internet chat. The chat application started back in 2005 and has hit over 100 million users across the world.
Perion Network created IncrediMail and Smilebox, which has over 150 million downloads and an installed based of over 18 million. IncrediMail has e-mail and Facebook combined and Smilebox is a photo sharing product. The applications are monetized through a toolbar.
SweetPacks generated $29.7 million in revenues during the 12 month period ending September 30, 2012 with an adjusted EBITDA of $9 million at a 30% margin.