Perion Network Ltd., a global advertising technology company, has bought out the Israeli video technology company Vidazoo for $93.5 million. But it might not be for that much money in the end. This is because the deal is broken down into several forms of payment consisting of $35 million in cash upon closing, with an additional maximum of $58.5 million structured as a performance earn-out, if certain EBITDA-based targets are achieved.
Vidazoo is a video content and yield management platform. Founded in 2013, the Tel Aviv based company focuses primarily on building smart automation tools to help publishers manage multiple video placements and optimize demand under the same platform.
The company offers a proprietary online video player (OVP) and integrated ad server, which allows publishers and brands to upload, manage and stream video content. Vidazoo’s OVP is certified with the major advertising platforms and compatible with all devices and video formats. It also has a yield management platform (YMP), which automatically optimizes and prioritizes publishers’ direct campaigns and open marketplace demand based on specific KPIs, and which is expected to be embedded into Perion’s intelligent hub (iHub).
“The video advertising market is massive but highly concentrated among the largest publishers and broadcasters,” said Doron Gerstel, Perion’s CEO. “Just as Shopify’s platform enables thousands of stores to compete with Amazon and Walmart, Vidazoo empowers hundreds of video-hungry publishers with a simple, highly scalable, plug-and-play video solution. By combining our high-impact video suite and Vidazoo’s unique online video player (OVP), we are offering an END to END video solution, eliminating all existing intermediate functions, and creating a direct, simpler and transparent relationship between advertisers and publishers.”
Daniel Slivkin, Chief Executive Officer of Vidazoo, commented, “We are thrilled to be joining the Perion family to drive continued growth and vision of Vidazoo video monetization technology across all screens. Through Perion’s HUB we will have direct access to high-impact video campaigns which is what premium publishers are looking for. Perion is an ideal growth partner and opportunity multiplier, across all dimensions of our current and future business.”