Perion Network Ltd (NASDAQ:PERI) made small progress Monday on news it was on the acquisition trail. The ad company bought video technology company Vidazoo for $93.5 million, consisting of $35.0 million in cash and $58.5 million in earn-out.
Vidazoo, founded in 2014 and headquartered in Tel Aviv, is a video monetization platform that allows digital publishers to generate new, incremental revenue through its video products.
Just as Shopify Inc's (NYSE:SHOP) platform enables thousands of stores to compete with Amazon.com (NASDAQ:AMZN) Inc and Walmart Inc. (NYSE:WMT).
Vidazoo empowers hundreds of video-hungry publishers with a simple, highly scalable, plug-and-play video solution.
Vidazoo CEO Daniel Slivkin commented, "We are thrilled to be joining the Perion family to drive continued growth and vision of Vidazoo video monetization technology across all screens. Through Perion’s HUB we will have direct access to high-impact video campaigns which is what premium publishers are looking for. Perion is an ideal growth partner and opportunity multiplier, across all dimensions of our current and future business."
Reports say Perion raised its guidance to account for the expected contribution from the Vidazoo acquisition, which is expected to be earnings accretive immediately.
Moreover, Perion raised the 2021 revenue outlook from $415 million - $430 million to $430 million - $445 million.
Perion increased the FY22 revenue guidance from $490 million - $520 million to $545 million - $575 million. Perion held $141.2 million in cash and equivalents.
PERI shares traded higher by 14 cents to $18.12 first thing Monday.
