Digital publisher-focused tech company Pub Ocean is set to be acquired by global tech company Perion following an agreement signed today. The deal is expected to close in the coming days and could cull an aggregate cash consideration of $22 million.
Perion owns the Synchronized Digital Branding solution that works across ad search, social media and display/video in the digital advertising sphere.
“Pub Ocean is a strategically important acquisition for Perion, as we advance the buildout of a Synchronized Digital Branding solution across all digital channels,” stated Doron Gerstel, CEO of Perion.
Under the terms, $4 million will be paid upon closing, with $17 million accepted as earn-out tied to two-year financial targets and $1 million paid for two years of retention.
The companies expect the acquisition to spark immediate growth and add over $25 million in revenues and $5 million in Adjusted EBITDA within the first year of ownership by Perion.
Pub Ocean will be integrated into ContentIQ to build a “new media supply chain.”
Chris Ingham Brooke, founder of Pub Ocean, stated of the acquisition: “We’ve had many suitors over the years, but no one has come close to Content IQ and Perion in terms of a strategic opportunity, vision and shared values. I’m looking forward to the next chapter and building a bigger company with all the resources and capabilities of Perion and Content IQ.”
Brooke will become executive vice president at ContentIQ, which was acquired by Perion in January.
The combined powers of Pub Ocean and CIQ are expected to drive both incremental revenue opportunities and profitability, due to synergies between the two platforms.
CIQ expects to benefit from Pub Ocean’s automated recommendations and analytics.