Perion Network Completes Strategic Acquisition of Hivestack, Elevating DOOH
Perion Network Ltd. (NASDAQ and TASE: PERI) recently finalized its acquisition of Hivestack Inc., a prominent player in the programmatic Digital Out of Home (DOOH) space. Tal Jacobson, CEO of Perion, provided Street Fight with insights into the strategic move and its implications for the company’s growth trajectory.
DOOH advertising transforms public spaces into experiences, engaging audiences with eye-catching, personalized content in real-time. It harnesses cutting-edge technologies to target, deliver, and measure unforgettable, immersive ads. With the acquisition of Hivestack, a programmatic DOOH technology innovator since 2017, Perion is entering an exciting market at its nascent stage, positioning the company to capitalize on its anticipated growth.
Mr. Jacobson stated to Street Fight, “With the addition of advanced DOOH to our product offering, brands have the opportunity to connect with people on the move. Whether they’re commuting, shopping, or just exploring the city, DOOH ensures that brands become a part of their journey.”
The transaction involved a US $100 million cash payment at closing, supplemented by a 3-year employee retention and performance-based payment plan of up to US $25 million. Jacobson emphasized that the move aligns seamlessly with Perion’s long-term growth strategy and diversification plans.
Key insights from the announcement include:
Perion strategically positions itself in the nascent yet rapidly growing Digital Out of Home market through the acquisition of Hivestack. The move is expected to capitalize on the significant growth projected in the Digital Out of Home channel, reaching US$30.7 billion by 2026.
Hivestack’s platform, deployed in 32 countries across North America, EMEA, LATAM, and APAC, enhances Perion’s global advertising reach. This global footprint positions the company to tap into economic trends impacting advertising budgets on a global scale.
The integration brings forth Hivestack’s cutting-edge technology, offering brands high-visibility creative, precise targeting, immediate impact, wide reach, and robust measurement capabilities. The DOOH Ad Server, SSP, and Header Bidder enhance the efficiency of targeted advertising on digital screens.
Hivestack’s DOOH DSP, combined with audience planning and campaign measurement tools, empowers media buyers to optimize inventory and maximize the effectiveness and ROI of DOOH advertising campaigns.
Synergies and Opportunities
The acquisition creates synergies with Perion’s existing advertising offerings and aligns with the company’s retail network strategy. Jacobson emphasized to us, that “by adding HiveStack, Perion is increasing its product suite for advertisers, and especially for Retailers around the world.”
The completion of the acquisition sets the stage for Perion to leverage Hivestack’s technology, market expertise, and global solutions, offering clients an enhanced and expansive suite of advertising solutions. Andreas Soupliotis, Founder and CEO of Hivestack, expressed excitement about the collaboration, foreseeing the development of new synergies that resonate with customers on a worldwide scale.