Austin-based Perk Inc., which makes mobile rewards software, has agreed to be acquired by
San Francisco-based digital media company RhythmOne in a deal worth $42.5 million, the companies said Monday.
Upon completion of the all-stock transaction, Perk will become a wholly-owned subsidiary of RhythmOne.
“We are pleased to announce this transaction, which will deliver a significant premium for Perk shareholders and yield an investment in a larger-scale digital media company with enhanced stock liquidity,” Perk CEO Ted Hastings said in a written statement.
Perk was founded in 2009 as Jutera Labs Inc., and launched its mobile rewards program platform in 2013. Perk operates mobile apps that let members earn Perk Points through activities including shopping, watching videos and playing social games.
The points can be redeemed for gift cards or cash, or can be loaded on a branded debit card. Perk generates revenue through advertising on the mobile apps.
RhythmOne describes itself as "a technology-enabled digital media company that connects online audiences with brands through premium content across devices.
Founded in 2004, RhythmOne pioneered Internet video search and works with digital advertisers, publishers and content providers to offer fully integrated, cross-screen solutions that span desktop and mobile video, rich media, display, social and native advertising, and content formats.
Hastings said in an interview that the deal will allow Perk to expand more rapidly than it would have as a stand alone company.
"Now you've got a combined company with a global presence, about $80 million on the balance sheet without any debt, and access to a rich pool of advertisers and a very engaged audience," he said. "You should be able to grow a lot faster as a combined entity than either company would have done on their own."
Perk has about 180 employees, including about 50 in Austin. The company also has offices in Bangalore, New York and Ontario. The company will continue to operate under the Perk name.
Hastings will join RhythmOne, which has 256 employees. His title has not yet been determined, he said.
The deal is expected to close in mid- to late-January.
In February, Perk acquired Viggle Inc., a mobile rewards and applications business, in a stock deal valued at $4.7 million.
Viggle, based in New York, allows its members to earn rewards for watching TV shows, discovering new music and playing interactive games.
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