Affle to buy Israel's Perion for $420 million in all-cash ad-tech deal

Indian advertising technology company Affle, now called Affle 3i Limited, has agreed to buy Perion Network, an Israeli ad-tech company listed on Nasdaq and the Tel Aviv Stock Exchange, in an all-cash deal valued at about $420 million. Under the agreement announced on Sunday, November 1, 2026, an Affle subsidiary will pay $11.70 for each Perion share, a 34.5% premium to Perion's closing price on October 30, the last trading day before signing. Perion's board has unanimously backed the deal, which is expected to close in early 2027.

The deal is a sizeable overseas purchase for an Indian technology company, and it comes from a mid-sized product firm rather than an IT services giant. Affle runs a mobile advertising platform that charges advertisers when a user completes an action, such as installing an app or making a purchase, a model the company calls cost per converted user (CPCU), and the deal is meant to scale that business globally. Perion sells advertising technology to brands and agencies. Buying Perion would give Affle a larger business outside India and more advertiser relationships, at a time when advertisers are shifting budgets towards platforms that can show measurable results.

The structure of the deal is worth noting. An all-cash offer with committed bank financing and no financing condition gives Perion's shareholders certainty, and the premium is substantial. The go-shop clause, common in US deals, means another buyer can still make a higher offer before December 11; if that happens, Affle could face a bidding contest. Affle says it expects to be free of net debt immediately after closing and that the deal will add to its earnings per share by the end of the first year, though those are the company's own projections.

The announcement follows a solid quarter for Affle. For July to September 2026, the company reported revenue from operations of about Rs 784 crore, up about 21% from a year earlier, and net profit of about Rs 130 crore, up about 17%, with an EBITDA margin of 23.2%. Management kept its guidance of more than 20% medium-term growth. A large acquisition will test whether the company can keep those margins while integrating a business of Perion's size in another country.

For India's technology sector, the deal shows a homegrown product company using its cash flow and bank credit to buy scale abroad, rather than raising money only from venture investors. If it closes as planned, it would also deepen business ties between India's and Israel's technology industries.

Short-term: Perion's shareholders will vote on the deal, regulators must approve it, and the go-shop period runs until December 11, 2026.

Long-term: If integrated successfully, Perion would make Affle a larger global ad-tech player with a bigger presence in the US and Europe. If not, the debt and integration costs could weigh on profits.

Who is affected: Affle and Perion employees and shareholders; advertisers and agencies using either platform; and India's listed technology companies weighing overseas acquisitions.

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