Perion Closes Purchase of SweetPacks; Set to Exceed FY Outlook
Perion Network Ltd. (NASDAQ: PERI) today announced that it has closed its previously announced acquisition of SweetIM (a.k.a. “SweetPacks”), a consumer internet company that produces a variety of free, fun and safe apps for everyday use.
“After three weeks of working closely with the SweetPacks management team, we are even more convinced that this acquisition will help take Perion to the next level and we are now focused on executing the integration plan,” commented Josef Mandelbaum, Perion's Chief Executive Officer.
Mr. Mandelbaum continued, “Based on the continued strength of our organic business, and the incremental contribution of one month of SweetPacks, we will exceed our full-year guidance, and are well positioned for significant growth in both revenue and profitability in 2013. This acquisition will provide us with meaningful scale and increased profitability and will strengthen our competitive advantage.”
Perion made an initial payment of $10 million in cash and 1.99 million Perion shares to the shareholders of SweetPacks on November 30, 2012. A second payment of $7.5 million in cash is due 12 months after closing. A third, conditional payment of $7.5 million in cash is due 18 months after closing, subject to certain milestones and achievements.
Previous guidance on a non-GAAP basis for 2012 was: revenues of $55 million, EBITDA of $12 million and Net Income of $9 million.
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