Affle 3i to acquire Perion Network in $420M all-cash deal; Q2 net profit rises 17.4% YoY to ₹129.78 Cr
Advertising has quietly split into two worlds. In emerging markets, brands pay for app installs and sign-ups on phones. In developed markets, the money flows to connected TVs, in-store screens and retailer ad networks, where advertisers want proof that their spend turned into sales. Ad-tech companies that can connect both worlds are rare, so scale and technology keep driving consolidation.
The Nifty 50 was trading at 23,301.10, up 1.08%. Meanwhile, Sensex also rose 1.27% to 75,401.93 on Monday. Meanwhile, Shares of Affle 3i Ltd. were trading at Rs. 1,430.10, up 6.58 percent from previous close of Rs. 1,341.80. The stock opened at Rs. 1,349.90 and reached an intraday high of Rs. 1,432.90 and low of Rs. 1,333.80. The company currently has a market capitalization of Rs. 20,078 crores.
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What's the news?
Affle 3i announced on November 1, 2026 that its Israel-based step-down subsidiary, Affle 3iL Ltd, has signed a definitive agreement to buy all of Perion Network, which is listed on NASDAQ and the Tel Aviv Stock Exchange. Perion shareholders will receive $11.70 per share in cash, valuing the company at about $420 million. Perion will keep its brand and run as a wholly owned subsidiary, and its shares will be delisted after closing.
Both boards have approved the deal, which still needs regulatory approvals and a vote by Perion shareholders, with a go-shop period first. It is expected to close in early 2027. Affle plans to fund it through committed bank financing and available cash, with Citi as the financing bank, and LUMA Partners and Barnea Jaffa Lande advising on the deal.
Financial & Business Analysis
Looking at the quarterly results of Affle 3i, the company's consolidated revenue from operations increased by 21.17 percent YoY, from Rs. 646.71 crore in Q2 FY26 to Rs. 783.59 crore in Q2 FY27, and increased by 4.88 percent QoQ from Rs. 747.16 crore in Q1 FY27.
In Q2 FY27 Affle 3i, consolidated net profit increased 17.44 percent YoY, reaching Rs. 129.78 crore compared to Rs. 110.51 crore during the same period last year. As compared to Q1 FY27, the net profit increased by 1.05 percent, from Rs. 128.43 crore. The basic earnings per share stood at Rs. 9.23 as against Rs. 7.88 recorded in the same quarter in the previous year, FY2026.
Affle is almost a single-model business: its CPCU platform, where advertisers pay per converted user, delivers 99.8% of revenue, with 72.2% from India and emerging markets and 27.8% from developed markets. Perion brings a different mix, with advertising solutions across web, CTV, digital out-of-home and retail media making up 78% of revenue and search the other 22%. Together, the group's mix would tilt toward developed markets and the channels advertisers are moving to.
Ad-tech has no order book, so customers and conversion volume are the better gauge. Affle delivered 12.9 crore converted users last quarter, up 18.2% year on year, and Perion's recent wins include Best Buy Canada and a 3,300-screen retail network in South Korea. Affle plans to bring its pay-per-conversion model to Perion's advertisers, with "CTV to cart" and "DOOH to cart" outcomes. It also plans to review Perion's contracts to improve profitability.
Industry Context
The money is still growing. WARC forecasts global ad spend to rise 9.1% to $1.3 trillion in 2026, while dentsu is more cautious at 5.0% growth. Dentsu puts digital at 69% of all spend, with retail media, CTV and digital out-of-home growing fastest.
Those are exactly Perion's channels. Retail media is forecast to rise 12.4% to $196.7 billion in 2026, about 16% of all ad spend, and to overtake linear TV and CTV combined. CTV ad spend alone is forecast at $40.7 billion this year. Buyers in these channels want measurable sales outcomes, which suits Affle's conversion-based model.
About Affle
Affle 3i Limited, is a global technology company that delivers consumer conversions for advertisers through its AI-powered Consumer Platform. Its CPCU model works across mobile, connected TV and other intelligent connected devices. Led by Chairperson, MD and CEO Anuj Khanna Sohum, the company says it would serve thousands of advertisers in more than 100 countries after the deal.