Incredimail 2014 Annual Report Download - page 31

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ITEM 4. INFORMAT IO N ON THE COMPANY
A. HISTORY AND DEVELOPMENT OF THE COMPANY
Our History
We were incorporated in the State of Israel in November 1999 under the name Verticon Ltd. and changed our name to IncrediMail Ltd.
in November 2000. In November 2011, we changed our name to Perion Network Ltd., to better reflect the diverse nature of our business. We
operate under the laws of the State of Israel. Our headquarters are located at 26 HaRokmim Street, Holon 5885849, Israel. Our phone number is
972-73-3981000. Our website address is www.perion.com
. The information on our website does not constitute a part of this annual report. Our
agent for service in the United States is Smilebox Inc., which is located at 15809 Bear Creek Parkway, Suite 320, Redmond, WA 98052.
We completed the initial public offering of our ordinary shares in the United States on February 3, 2006.
Since November 20, 2007, our ordinary shares are also traded on the Tel Aviv Stock Exchange.
On August 31, 2011, we completed the purchase of Smilebox Inc., a Washington corporation.
On November 30, 2012, we completed the purchase of SweetIM Ltd., a Belize company that wholly owns SweetIM Technologies Ltd.,
an Israeli company.
On January 2, 2014, we completed the purchase of ClientConnect Ltd., an Israeli company that wholly owns ClientConnect Inc., a
Delaware corporation, and ClientConnect B.V., a Netherlands company.
On July 15, 2014, we completed the purchase of Grow Mobile, Inc., a Delaware corporation.
On February 10, 2015 we completed the purchase of Make Me Reach SAS, a French company. See "Recent Developments".
Principal Capital Expenditures
In 2012 and 2013, capital expenditures consisted of investments in computer hardware and software, leasehold improvements and
furnishings. In 2014, capital expenditures consisted of $10.9 million for leasehold improvements and furnishing related to our new headquarters
office in Holon, as well as investments in computer hardware and software.
In 2015, we expect to continue our growth strategy of acquiring products and businesses, in addition to organic capital investments. Our
organic investments are expected to consist primarily of acquiring computer hardware, software, peripheral equipment and installation, all of
which are expected to be financed by our existing resources. We currently expect that outside of possible acquisitions of products and
companies, our capital expenditures will be approximately $2.5 million in 2015. To date, we have financed our general capital expenditures with
cash generated from operations. To the extent we acquire new products and businesses, these acquisitions may be financed by any of, or a
combination of, cash generated from operations, or issuances of equity or debt securities.
Recent Developments
On July 15, 2014, we consummated the acquisition of Grow Mobile, Inc., a Delaware corporation headquartered in San Francisco. The
initial payments of $10 million ($8.2 million after taking into account a post-
closing working capital adjustment) was paid in cash (of which
approximately $1.3 million is subject to continued employee vesting) and $7 million was paid in the form of 687,467 ordinary shares (of which
approximately $1.1 million in form of 108,159 shares are subject to continued employee vesting). In addition, the former Grow Mobile security
holders may earn up to an additional $13.2 million in cash and $11.8 million in ordinary shares, contingent upon achieving certain revenue and
profit milestones through June 30, 2016. See Note 3b of the Financial Statements for additional information on accounting for our Grow Mobile
acquisition. Grow Mobile provides an innovative platform for mobile advertising that enables advertisers of mobile applications to buy, track,
optimize, and scale user acquisition campaigns from a single dashboard. Grow Mobile has become part of Perion’
s mobile marketing business,
which was recently created to address the advertising needs of advertisers of mobile applications, and will enable Perion to provide a more
comprehensive technical and platform solution for app developers.
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