Israel’s publicly listed mobile app services company Perion has announced the acquisition of Grow Mobile Inc, a San Francisco-based mobile ad aggregation startup Grow Mobile. Perion will initially pay $17 million in cash and equity at the closing of the deal expected to take place in the third quarter. Up to an additional $25 million may be paid over the next two years depending on the fulfillment of revenue and profit targets.
The Israeli ad tech company aims to consolidate powers in global advertising market which has been growing exponentially in the last couple of years. It says the products and campaigns run by Grow will gradually integrated to the comprehensive mobile marketing platform that the company has been developing. Grow Mobile’s three co-founders -Brendan Lyall, A.J. Yeakel and Minglei Xu, will all join Perion.
The US company which was founded almost a year ago, provides an aggregator platform that brings together 75+ marketing and ad networks and sources and helps the app publishers plan, buy and track their media campaigns. It is serving some hot clients like Zynga and Walmart, with total value of the campaigns reaching over $20 million as of today.
Perion, on the other hand, is mostly big on desktop and heavily invests in mobile. It expects to quadruple its revenues to around $460 million in 2014, mainly due to the acquisition of ClientConnect from Israel’s Conduit for $660 million.
In a statement, Grow said “we have found a partner that shares our vision to create the most effective platform for mobile app promotion. With complimentary resources and expertise we plan to provide the most innovative and efficient mobile advertising products.”