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Perion Surges as Said to Get 4-Month Google Accord Extension

Perion Networks Ltd. advanced the most in three weeks as a person familiar with negotiations said its contract with Google Inc. will be extended by four months. The agreement is set to expire today.

Perion shares jumped 7.5 percent, the most since Jan. 10, to 42.9 shekels ($11.53) at the close in Tel Aviv. The shares dropped 11 percent last week. Perion’s U.S.-traded shares tumbled the most in 14 months on Jan. 23 on concern the partnership with Google will be terminated.

The company’s contract with Google will be extended until May 31, according to the person, who asked not to be identified due to the sensitivity of the negotiations. That is the expiration date of the search engine’s contract with SweetPacks, an Israeli producer of free Internet applications, which Perion bought in November. The extension was suggested by Google, the person said. No one at Perion was available to comment.

The company sells e-mail, photo sharing and Internet security products that often come packaged with Google’s search engine. The Tel Aviv-based application provider’s user policies have also received approval from the world’s no. 1 search engine, according to the person.

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