Perion Joining Forces With Conduit

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Sept. 16 (Bloomberg) –- Perion Network CEO Josef Mandelbaum discusses the plans being finalized for what will be Israel’s biggest listed internet company. He speaks with Elliott Gotkine on Bloomberg Television's "Money Moves." (Source: Bloomberg)

The biggest internet company in israel was born today or at least the plans were thrashed out today when they announced plans to join forces with conduit.

I'm joined by the ceo.

Thank you for joining us.

It's a complicated transaction.

Its shareholders are going to get 81% of the enlarged company's. how do you characterize it?

It's complicated but it's not a takeover.

In reverse mergers, the board becomes ownership of the board and management grade it really is combining forces.

The senior management team remains in tact and the border remains intact.

We are adding two of seven board members . 81% of the ownership will be former shareholders of conduit but we will combine forces in and accretive acquisition for all the shareholders.

A math question from the press release -- one plus one equals -- three.

How does one plus one equals three?

From three things ironically.

First of all, the talented people on both sides are comp a talents.

We focus on building consumer apps.

The client connect side develops the platform and help us monetize and distribute those apps.

This is a highly accretive transaction because we have a public current see that's going to drive the business.

Global growth -- mobile growth in terms of future acquisitions.

Lex shares are down 10% today.

Why has this happened?

Investors looked like they were expecting some kind of premium.

I think it's a complicated transaction.

Number two, judges and the next year ultimately, it's a great commendation and a highly accretive transaction.

It's a great transaction for the shareholders of conduit and it will hold a terrific this is together, big internet giant in the search space.

We will have 2% of u.s. searches by combining forces.

What are you trying to build here?

A perfect company for a nice acquisition.

Are we going to see it go the same way of many others?

I don't think so.

When i joined the company three years ago and today, the founders and myself want to build a big company based in israel, which next to silicon valley is the height of talent and all the gradients are here to make a billion dollar company here in israel.

We believe we can do that with offices around the world.

It's to build up something and be a meaningful employer based out of israel.

[indiscernible] my cfo would kill you if i said not tomorrow.

I think it's possible we could hit it.

Do you need more cash?

Are you planning more acquisitions?

Our strategy is built on organic and inorganic investments.

It's a great cash flow business.

We combined and did over $100 million operating cash flow.

I think we have plenty of cash and we have our stock to use as we look toward any capital markets, we will look to see how we can increase that.

The future fund-raising?

It's not out of the question.

You're going to be listed here and in new york.

The tel aviv stock exchange had a rocky run of late.

Companies heading straight to nasdaq.

Is that listing in tel aviv for the long run?

For the time being, we are happy to be a nasdaq listed

This text has been automatically generated. It may not be 100% accurate.

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