• by Tobi Elkin  @tobielkin, December 1, 2015

Ad technology firm Undertone has been acquired by Perion, a publicly traded Tel Aviv-based global marketing tech firm for $180 million in cash, the companies today confirmed.

The combination of Undertone’s cross-screen ad technology with Perion’s focus on publishers and performance marketing tools aims to create digital advertising solutions at scale. The combined companies have an estimated $350 million in revenue (2015) and 660 employees.

A release on the acquisition noted that Perion’s focus is aligned with Undertone’s strengths in brand advertising and agency/marketer relationships. The acquisition will also extend Undertone's mobile footprint, programmatic capabilities and broaden its product suite with the addition of proprietary creative formats. 

"The two businesses are complementary," Eric Franchi, Undertone co-founder and chief evangelist, told Real-Time Daily via email. "Perion has traditionally focused on publishers and performance marketing, while Undertone’s strength is with brands and agencies. Together we create a scaled, profitable public ad tech company that will lead the market in high quality solutions for brands and publishers.” 

Undertone said its revenues for the first nine months of 2015 were $104.0 million, and 75% of revenues come from high-impact cross-screen and mobile. Revenues for 2015 are expected to be in the range of $143 to $145 million. Adjusted EBITDA for 2015 is expected to be in the range of $21 to $23 million.