Israeli unicorn AppsFlyer in advanced talks for $1-2 billion sale
Adtech firm reopens exit process after failed Apollo negotiations.
The Israeli company AppsFlyer is in advanced negotiations for a sale at a valuation of approximately $1-2 billion, Calcalist has learned. According to estimates, the buyer will be a private investment fund. For the sale process, the company has chosen investment bank Goldman Sachs, which it had worked with previously. The company has not raised capital since 2020, when it reached a valuation of $2 billion. No response was received from AppsFlyer.
In March of this year, the company terminated negotiations for its acquisition with the American investment giant Apollo Global Management, in cooperation with the Israeli private equity fund Fortissimo Capital. The deal was expected to involve the acquisition of a controlling stake of approximately 50% to 60% of the company’s shares (through an Apollo debt fund). The transaction was supposed to reflect a valuation of $1.9 billion for AppsFlyer. The negotiations reportedly collapsed after the decline in valuations of software companies led the buyers to request additional protection mechanisms. AppsFlyer’s board of directors, together with Goldman Sachs, decided not to accept the revised terms and halted the process.
AppsFlyer, founded by Oren Kaniel and Reshef Mann, had previously considered an IPO at a valuation of $4-5 billion. However, following a slowdown in annual growth (which dropped to 10%-15%) and challenging conditions in the digital advertising market, the company has opted to explore a sale process instead. The company generates annual recurring revenue (ARR) of approximately $500 million, operates profitably with positive cash flow, and employs about 1,300 people (following a 7% layoff last year). While veteran funds such as Pitango and Qumra would realize strong returns from an exit, General Atlantic, which led the company’s $210 million round in 2020 at a $2 billion valuation, would likely see a relatively modest return at the current valuation.
The company develops technology that enables app owners to identify where their most valuable users originate, whether from Google searches, advertisements on Facebook or X, email marketing, SMS campaigns, or television advertising. Its platform analyzes these traffic sources and allows marketers to measure the effectiveness of campaigns and allocate budgets more precisely.
In recent years, AppsFlyer has completed several acquisitions that expanded its product portfolio. To date, the company has raised approximately $310 million from investors including General Atlantic, Salesforce Ventures, Goldman Sachs Growth, Qumra Capital, Pitango, and DTCP.
In recent months the company has also introduced new artificial-intelligence capabilities designed to help marketers create AI agents, identify user acquisition sources, and track user journeys across platforms. One of the platform’s key innovations is the ability to analyze cross-platform user behavior, from mobile devices to smart TVs, while securely sharing data with partners and maintaining user privacy.
The company has also launched an enterprise security suite that includes permissions and access management based on the Zero Trust model, which relies on real-time behavioral analysis to prevent advertising fraud. The suite also features AI-powered reporting tools and a creative management center designed to streamline and accelerate the creation and distribution of marketing campaigns.
