Sophie Blake
AppsFlyer has ended negotiations to sell a significant stake in the company after private equity bidders attempted to modify the structure of a proposed acquisition valued at roughly $1.9 billion.
The marketing analytics firm had been in discussions with Apollo Global Management and Israeli investment fund Fortissimo Capital regarding a transaction that would have transferred between 50% and 60% of the company’s shares. The deal, which was close to being finalized, ultimately collapsed after Apollo sought to introduce additional protection clauses into the agreement, according to Calcalist.
AppsFlyer’s board, working with financial adviser Goldman Sachs, decided to stop the sale process and reject the revised proposal.
Under the original structure, the acquisition would have been carried out through a debt fund managed by Apollo. Apollo was expected to control about 70% of the acquired shares, with Fortissimo holding the remaining 30%.
The overall value of the transaction was estimated at around $1 billion, depending on the percentage of shares purchased, while the implied company valuation stood at about $1.9 billion.
People familiar with the negotiations said the talks had reached an advanced stage and draft agreements were already circulating when Apollo requested changes designed to add further safeguards to the deal. The request prompted AppsFlyer’s board to reconsider the transaction and ultimately halt the process.
The breakdown occurred amid a broader decline in technology and software company valuations across global markets.
Investors have been reassessing the outlook for traditional software companies as artificial intelligence reshapes the competitive landscape. The sector has faced additional pressure this year, with technology-focused equity benchmarks reflecting a significant downturn in software stocks.
The changing market environment reportedly made potential buyers more cautious, leading to the push for revised terms late in the negotiations.
The sale process had been viewed internally as an alternative to a public listing.
AppsFlyer had previously explored an initial public offering that could have valued the company between $4 billion and $5 billion. However, slower revenue growth—estimated at roughly 9% to 15% annually—made a listing more difficult under current market conditions.
The company’s board later explored a strategic sale instead, initially targeting a valuation of about $2.7 billion to $3 billion before negotiations with Apollo and Fortissimo progressed toward the lower $1.9 billion figure.
Founded in 2011 by Oren Kaniel and Reshef Mann, AppsFlyer develops software used by mobile app publishers and marketers to track user acquisition and measure advertising performance across digital channels.
Its platform analyzes traffic sources ranging from search engines and social media advertising to email campaigns, SMS marketing, and television ads, helping companies determine where their most valuable users originate.
The company generates roughly $500 million in annual revenue and operates profitably. AppsFlyer employs about 1,300 people and raised $210 million in 2020 at a valuation of around $2 billion in a funding round led by General Atlantic.
In recent years the firm has expanded its platform with artificial intelligence features aimed at improving campaign analysis and tracking user behavior across multiple platforms, including mobile devices and connected televisions.
Comments
Loading…