Hivestack Acquired By Ad Tech Firm Perion In $100M Cash Deal

December 12, 2023 by Dave Haynes

The programmatic platform company Hivestack has been acquired by another ad tech firm, Perion Network Ltd., for $100 million in cash.

“We are excited about the acquisition of Hivestack, which both complements and advances our long-term growth strategy,” says Tal Jacobson, CEO of Perion, which has main offices in New York and Israel. “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.”

Perion is self-described as “a global multi-channel advertising technology company that delivers synergistic solutions across all major channels of digital advertising – including search advertising, social media, display, video and CTV advertising. These channels converge at Perion’s intelligent HUB (iHUB), which connects the company’s demand and supply assets, providing significant benefits to brands and publishers.”

It is the second big deal for Hivestack CEO and Founder Andreas Soupliotis, who sold Ayuda Media Systems to Broadsign in 2019. Ayuda had spun out Montreal-based Hivestack in 2017, and it was not part of the Broadsign deal.

Well done, Andreas!

Perion gets a programmatic platform used by many of the world’s largest brands, agencies, media owners, and partners including Uber, Colgate, Lego, InterContinental Hotel Group, Doordash, GroupM, dentsu, The Trade Desk, Xandr, Clear Channel, Lamar, Stroër, and many more.

From PR:

• Hivestack’s state-of-the-art platform is deployed in 32 countries, spanning North America, EMEA, LATAM and APAC. This global footprint will enable Perion to capitalize on economic trends impacting advertising budgets globally, and offer a variety of solutions in these additional markets.
• This transaction significantly contributes to Perion’s diversification strategy, enabling it to establish a considerable footprint in the fast-growing DOOH channel, which according to a PQ Media research report, is predicted to increase from US$21.5 billion in 2023 to US$30.7 billion in 2026, reflecting a 15.3% CAGR.
• Hivestack offers media owners an array of purpose-built software like the DOOH Ad Server, SSP, and Header Bidder, designed to manage, deliver, and optimize targeted advertising on digital screens, enhancing yield and sourcing demand efficiently.
• For media buyers, Hivestack’s DOOH DSP, along with tools for audience planning and campaign measurement, provides robust capabilities for sourcing optimal inventory and maximizing the effectiveness and ROI of DOOH advertising campaigns.
• This acquisition is expected to create synergistic opportunities with Perion’s existing advertising offering and business and fits nicely with the company’s retail network strategy.

Jacobson concludes: “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, says: “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.”

Along with the upfront money side of the deal, Perion will pay up to an additional US$25 million (in cash and equity) structured as a three-year employee retention and performance-based payment plan. The performance-based payment plan is tied to EBITDA and revenue targets.