Perion Network Ltd (PERI) Is Merging With Conduit In All-Stock Deal

Posted Sep 16, 2013

Perion Network Ltd (NASDAQ:PERI) is an Israeli consumer Internet company that has merged with Conduit’s “Client Connect” business in an all-stock transaction.  Conduit is going to spin off the Client Connect business, which includes a monetization and distribution platform for developers and publishers.

The spin-off will be combined with Perion.  The combined company is going to issue Conduit shareholders between 57 and 60 million new shares.

Perion’s flagship products are Incredimail and Smilebox.  The company has a market valuation of around $162 million and their shares closed at $13.17 on Friday.  The combined company is going to be worth between $800 and $900 million.  Perion will be owned 81% by Conduit shareholders and option holders.  The other 19% will be owned by by Perion shareholders and option holders.

“This is a transformational event for our company,” stated Perion chief executive officer Josef Mandelbaum. “Our businesses complement each other and will enable us to increase investment in our monetisation and distribution platform, mobile efforts, display advertising and product innovation.”

Conduit is known for offering toolbars and mobile apps to enable publishers to connect with users.  Some of their partners includes Time Warner Cable, Fox News, and Groupon.  The transaction is expected to close in early January.

[Source: Reuters]