Global adtech company Perion has acquired programmatic digital out of home (DOOH) company, Hivestack, for US $100 million in cash paid upon closing. Perion will also pay up to an additional US$25 million (in cash and equity) structured as a three-year employee retention and performance-based payment plan.
This is the first acquisition made by Perion CEO Tal Jacobson since taking the helm back in February, and signals the company's ongoing commitment to its global diversification plan. Perion has over $500 million in its coffers, and Jacobson says the company will make more acquisitions in the future.
Initially established in 1999 as a tool bar firm, Perion was one of the first technology companies founded in Israel. Over the years, the company has undergone several transformations. These days, it runs across all of the major digital ad channels, such as social media, display, video, search, and CTV advertising.
Hivestack was founded in 2017 with headquarters in Montreal, Canada, and operates in 32 countries spanning North America, EMEA, LATAM and APAC. It powers the buy and sell side of programmatic digital out-of-home (DOOH) advertising and offers media owners an array of purpose-built software like the DOOH Ad Server, SSP, and Header Bidder, designed to manage, deliver, and optimise targeted advertising on digital screens.
Currently, the Hivestack platform is used by many of the world's largest brands, agencies, media owners, and partners including Uber, Colgate, Lego, InterContinental Hotel Group, Doordash, GroupM, dentsu, The Trade Desk, Xandr, Clear Channel, Lamar, Stroër, and many more.
For Perion, the acquisition is expected to create synergistic opportunities with the company's existing advertising offering and business and enable Perion to establish a considerable footprint in the fast-growing DOOH channel, which according to a PQ Media research report
, is predicted to increase from US$21.5 billion in 2023 to US$30.7 billion in 2026, reflecting a 15.3% CAGR.
Perion CEO Tal Jacobson
"We are excited about the acquisition of Hivestack, which both complements and advances our long-term growth strategy," said Tal Jacobson, CEO of Perion. "In addition to advancing our diversification strategy, this transaction aligns with our objective to expand our technological capabilities and product offerings, and we will continue to pursue additional inorganic growth opportunities."
Andreas Soupliotis, founder and CEO of Hivestack, said, "Joining Perion marks a significant milestone in our journey. The strength of our technology, coupled with Perion’s market expertise and compelling advertiser solutions, will result in new synergetic solutions that resonate with customers on a worldwide scale. We are thrilled about the endless possibilities that this unlocks."