Perion Network Ltd. [NASDAQ: PERI] has purchased Vidazoo which is a leading video technology firm that allows both marketers and producers to offer high-impact content and promotion to customers. Vidazoo has the power to enable hundreds of video-hungry producers with a simple, highly scalable, plug-and-play video solution.
Vidazoo contemplates that through Perion’s HUB it has the opportunity to deliver high-impact video campaigns which is what premium producers are searching for. Vidazoo contemplates that Perion is an ideal growth partner and opportunity multiplier, across all dimensions of its current and future business.
The video monetization solution of Vidazoo is distinguished by three unique capabilities. It offers a patented online video player (OVP) and unified ad server, which enable producers and brands to upload, manage and stream video content. It also offers rich video content and ad marketplace, with links to multiple content providers and more than 20 programmatic platforms.
Last but not the least, the capability of the Vidazoo monetization solution offers an advanced yield management platform (YMP), which automatically enhances and ranks direct campaigns and open marketplace demand based on specific KPIs of producers. The financial highlights disclosed that Vidazoo has generated actual revenue of $31.9 million in 2020 and an adjusted EBITDA of $4.3 million. As per2021 outlook, the firm anticipates generating a revenue of $45 million.
As per the acquisition agreement, Perion has purchased all the shares of Vidazoo for $35.0 million in cash upon closing, with an additional maximum of $58.5 million structured as a performance earn-out through 2023. If Vidazoo accomplishes all of its performance goals through 2023, the total maximum payment would be $93.5 million.