Perion Acquires DOOH Platform Hivestack for USD $100 million
Perion Network, which uses technology to connect advertisers and consumers across all major digital channels, announced that it has successfully acquired Hivestack Inc. Hivestack Inc. is globally recognized for its innovative full-stack programmatic digital out-of-home (DOOH) offerings. The deal includes a three-year employee retention and performance-based payment plan worth up to $25 million. Furthermore, it also includes US $100 million in cash paid at closing.
Perion’s Acquisition of DOOH platform Hivestack
Ordinary public spaces are transformed into dynamic experiences with DOOH advertising. It engages audiences with personalized, attention-grabbing content in real-time. Using state-of-the-art technology, it targets, delivers, and measures memorable, immersive advertisements that establish a connection between brands and consumers on the go. With the acquisition of Hivestack, a pioneer in programmatic DOOH technology since 2017, Perion is positioned to take advantage of its expected growth and enter an exciting new market.
A broader reach, a broader technology base
- The cutting-edge platform from Hivestack is in use in 32 nations throughout North America, EMEA, LATAM, and APAC. With this global reach, Perion will be able to take advantage of economic trends that affect advertising budgets around the world. Furthermore, it will also be able to provide a range of solutions in these new markets.
- This deal makes a substantial contribution to Perion’s diversification strategy. It will allow the establishment of a significant presence in the rapidly expanding DOOH channel. It is expected to grow at a 15.3% CAGR from US $21.5 billion in 2023 to US $30.7 billion in 2026, as per a PQ Media research report.
- Hivestack provides media owners with a range of specially designed software, such as the Head Bidder, SSP, and DOOH ad server. These are intended to manage, deliver, and optimize targeted advertising on digital screens to efficiently source demand and increase yield.
- In addition to tools for audience planning and campaign measurement, Hivestack’s DOOH DSP offers media buyers strong capabilities for locating ideal inventory and optimizing the efficacy and return on investment of DOOH advertising campaigns.
- This acquisition aligns well with Perion’s retail network strategy. Moreover, it is anticipated to generate opportunities for synergy with the company’s current advertising offering and business.
Read More: Hivestack Partners with Up Media to Expand Thai DOOH Market Share
Hivestack’s DOOH capabilities
GroupM, Dentsu, Uber, Colgate, Lego, InterContinental Hotel Group, Doordash, The Trade Desk, Xandr, Clear Channel, Lamar, and Stroer are among Hivestack’s agency, brand, ad-tech partner, and media owner clients. Perion serves clients like DraftKings, Kroger, Albertsons, BMW, HBO, and Nike. Through the acquisition, Perion will be able to expand its DOOH capabilities. Perion operates in all of the major digital advertising channels, including search, social, display, video, and connected TV. Perion has a $1.3 billion market capitalization and trades in both New York and Tel Aviv. Unlike many tech companies, Perion has produced positive returns over the previous five years.
Here’s what they said
Tal Jacobson, CEO of Perion said
We are excited about the acquisition of Hivestack, which both complements and advances our long-term growth strategy. Hivestack’s DOOH technology platform stands out by offering brands and advertisers what they crave the most: high-visibility creative, precise targeting, immediate impact, wide reach and measurement. In addition to advancing our diversification strategy, this transaction aligns with our objective to expand our technological capabilities and product offerings, and we will continue to pursue additional inorganic growth opportunities. We welcome Hivestack and its impressive team of professionals to Perion. We look forward to capitalizing on the synergies between Hivestack’s technology and Perion’s existing solutions, to provide clients an even more comprehensive, end-to-end offering.
Andreas Soupliotis, Founder and CEO of Hivestack, stated,
Joining Perion marks a significant milestone in our journey. The strength of our technology, coupled with Perion’s market expertise and compelling advertiser solutions, will result in new synergetic solutions that resonate with customers on a worldwide scale. We are thrilled about the endless possibilities that this unlocks.
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