Digital media company Perion Network (formerly IncrediMail) has acquired Israeli consumer internet company SweetPacks, for some $43 million in cash and shares.
SweetPacks offers a selection of products designed to enhance the user's digital experience. Its SweetIM application allows user to enhance their messaging experience and express in creative ways across online platforms like messenger, Facebook, and email.
"This combination provides meaningful scale and adds improved back-end systems that will strengthen our competitive advantage," said Josef Mandelbaum, Perion's CEO. "This acquisition further accelerates our own efforts to scale, adds 22 million new users, creating a larger and more profitable company."
"This combination is a unique and powerful opportunity to leverage the successes of both Perion and SweetPacks," said SweetPacks' CEO, Nadav Goshen, who will join Perion as its new Chief Operating Officer. "I firmly believe in Perion's vision for the future and am confident that together we can accelerate growth and increase profitability."
Founded in 2000, SweetPacks generated $29.7 million in revenues in the 12-month period ending September 30, 2012, with Adjusted EBITDA of $9.0 million, at a 30% margin. This is 89% higher than 2011 revenues of $15.7 million and almost double 2011 Adjusted EBITDA of $4.5 million.
Perion offers a growing portfolio of easy-to-use products, including: IncrediMail Premium, an e-mail product sold in over 100 countries in 8 different languages; Smilebox, a photo social expression product and service; and PhotoJoy, a photo sharing and discovery screensaver/wallpaper product.
Founded in 2000, Perion is headquartered in Redmond, WA, with a research and development center in Tel Aviv, Israel. The company is traded on Nasdaq (PERI) and TASE, with a market cap of $90 million.