Perion has acquired Hivestack, a programmatic digital out-of-home (DOOH) advertising company, for $100 million in cash. An additional performance-based payment of up to $25 million tied to three-year financial targets may also be paid.
Hivestack provides ad serving, supply-side platform, and demand-side platform technology for DOOH media. Its platform is used by brands like Uber and Colgate, and is deployed in 32 countries across the Americas, Europe, the Middle East, Africa, and Asia Pacific.
According to Perion, the deal advances its strategy to diversify into fast-growing digital advertising channels like DOOH. Spending on DOOH ads is predicted to grow at an annual rate of 15.3% from $21.5 billion in 2023 to $30.7 billion in 2026.
Perion financed the purchase using existing cash reserves. The performance payments are contingent on Hivestack meeting specified EBITDA and advertising revenue contribution targets between 2024 and 2026. If achieved in full, Hivestack’s founders and employees would receive the maximum $25 million.
| In $ millions | 2023E | 2024-2026 Aggregate Targets | 3-Year Target CAGR |
| Revenue | $45 | $300+3 | 43% |
| Contribution ex-TAC | $33 | $212 | 40% |
| Adjusted EBITDA | -$3 | $56 | – |
