Isreal-based Perion acquired NYC-based Ad Tech Company Undertone

Undertone was acquired by Perion in a $180M all cash deal. The deal is meant to give Perion a bigger presence in the American market. It suggests a trend towards more consolidation and a shifting of the type of ads being delivered.

Undertone specializes in high-quality, or "high-impact" ads. They make interactive video and media-rich ads meant to earn higher click-through rates than average display ads. The acquisition represents a bet on this type of service. Despite their higher price tag, these types of ads will play a large role in the future of digital advertising.

The acquisition also represents another data in the trend of consolidation. The big players like Facebook and Google have been snapping up a lot of ad tech companies over the last few years and seem to be increasing this behavior. Consolidation generally marks a maturing industry and price pressure. High-margin items like media-rich ads are likely one of the better solutions to this downward pressure. However, the larger trend will continue its march towards commoditization of these products.