Perion Announces Accretive Acquisition Of SweetPacks

Perion Network Ltd. (NASDAQ: PERI), today announced the acquisition of SweetIM (a.k.a. “SweetPacks”), an Israeli consumer internet company. SweetPacks produces a variety of free, fun, easy to use and safe apps and downloadable content for everyday use.

“I am very excited about this powerful acquisition that builds off of our great Q3 numbers and accelerates our growth rate. In addition, the acquisition significantly increases our revenues, nearly doubles our profits and expands our profit margins enabling us to exceed $100 million in revenue in 2013,” commented Josef Mandelbaum, Perion’s Chief Executive Officer.

SweetPacks generated $29.7 million in revenues in the 12 month period ending September 30, 2012, with Adjusted EBITDA of $9.0 million, at a 30% margin. This is 89% higher than 2011 revenues of $15.7 million and almost double 2011 Adjusted EBITDA of $4.5 million.
 

Combined Metrics
 
Trailing Twelve Months “TTM” 9/30/12
In millions ($US)     Perion (1)     SweetPacks (2)     Combined
Revenue     $ 51.1       $ 29.7       $ 80.8  
Adjusted EBITDA (Margin)     $ 10.3 (20 %)     $ 9.0 (30 %)     $ 19.2 (24 %)
Enterprise Value (EV)     $ 71.4M       $ 40.0M        
EV/Revenue       1.4         1.3        
EV/Adjusted EBITDA       7.1         4.5        

(1) Perion revenue and Adjusted EBITDA are on a non-GAAP basis; a detailed reconciliation can be found in table attached.

(2) Based on company preliminary financials.
 

“This combination provides meaningful scale and adds improved back-end systems that will strengthen our competitive advantage,” added Mr. Mandelbaum. “This acquisition further accelerates our own efforts to scale, adds 22 million new users, creating a larger and more profitable company.”

If you liked this article you might like

5 Breakout Stocks to Buy for Big Gains

13 Stocks to Buy for the Second Half of 2015

3 Stocks Under $10 Making Big Moves Higher

Stocks Fall but S&P 500 Finishes Year With Double-Digit Percentage Gains

Stocks Sell Off in Final Hour as Oil Dictates 2014's Winners and Losers