YouAppi is set to be acquired for $45 million by Affle (India) Limited (BSE: 542752 & NSE: AFFLE) through its subsidiaries (“Affle”). The deal involves an upfront payment of $35.44 million for 100% equity ownership. The deal also includes a deferred payment of $9.56 million, to be paid one year post-acquisition, according to Affle.
YouAppi provides advanced, programmatic mobile-app marketing solutions for the global gaming industry. They use Artificial Intelligence and Machine Learning to deliver real-time optimization, employing sophisticated algorithms and detailed audience segmentation.
Anuj Khanna Sohum, MD and CEO of Affle, expressed expectations to generate synergies from the deal. The deal is a strategic move aligned with Affle's global growth strategy, Affle2.0. The goal is to enhance their Cost Per Converted User (CPCU) business in the gaming sector through team and platform vertical integration. YouAppi's gaming-focused mobile advertising platform is seen as synergistic, and it's expected to improve consumer conversions for game developers worldwide on both iOS and Android platforms.
Affle is a global technology firm founded in 1984. It has a specialized consumer intelligence platform that provides consumer suggestions and lead conversions through personalized mobile ads. Since the acquisition announcement yesterday, Affle's stock price is up 3.64%.
Back in April this year, the acquisition purchase price was inaccurately reported at a sizeable $110 million. The discrepancy in figures reduces the startup's exit multiple, yielding a considerably lower return for investors than previously reported. An analysis of the startup's revenue and net income in relation to the purchase price translates into a 2.5x multiple of the startup's average revenue over the last three years.
YouAppi was founded by Moshe Vaknin and Ofer Garnett in 2011. It raised $18.1 million in funding from investors such as Flint Capital, Glilot Capital Partners, Hawk Ventures, and Emery Capital.
