Conduit plans to acquire Perion Networks

Toolbar developer Conduit is expected to pay a premium on Perion's $146 million market cap, and carry out a reverse merger.

Toolbar and mobile applications developer Conduit Ltd. is planning to acquire Perion Networks Inc. (Nasdaq:PERI: TASE:PERI), market sources believe. Those sources also say that privately-owned Conduit also plans a reverse merger with publicly traded Perion at a premium on the company's market cap of $146.36 million. Both are Israeli companies. Perion's share price rose 8.42% on Nasdaq yesterday to close at $12.11.

Conduit is one of Israel's most successful and valuable start ups with a company value of $1.3 billion. The company has raised $9.75 million from Benchmark Capital, Yozma Venture Capital and private investors and had estimated revenue of $800 million in 2012.

Perion, formerly Incredimail, has developed products which help enhance emails and other digital communications. First quarter 2013 revenue was $27.6 million, up 145% from the corresponding quarter, mainly as a result of the $41 million acquisition of emoticon apps maker Sweetpacks last November. Net profit rose 166% in the first quarter to $5.8 million from the corresponding quarter.

Perion declined to comment on the report.

Published by Globes [online], Israel business news - www.globes-online.com - on July 10, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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