AppsFlyer in advanced talks to be acquired at over $3.5 billion valuation
The Israeli company, with 1,300 employees and $400 million in revenues, is closing on a potential purchase by a private equity firm.
Israeli unicorn AppsFlyer is in advanced negotiations to be acquired for an estimated $3.5–4.5 billion, Calcalist has learned. According to sources, the buyer is expected to be a private equity firm. For the sale process, AppsFlyer has engaged the investment bank Goldman Sachs.
The company has not raised capital since 2020, when it was valued at $2 billion. Since then, AppsFlyer’s revenues have tripled, and it has maintained profitability for several consecutive quarters. New products launched over the past two years have significantly contributed to its growth.
Founded in 2011 by Oren Kaniel and Reshef Mann, AppsFlyer employs approximately 1,300 people and generates around $400 million in annual revenues, alongside positive cash flow. The company develops technology that enables app owners to identify which channels bring the most profitable users, whether through Google search, Facebook or Twitter ads, direct mail, SMS campaigns, TV campaigns, and more.
AppsFlyer has also made several acquisitions in recent years to expand its product portfolio. Its notable investors include General Atlantic, the Salesforce investment fund, the Goldman Sachs growth fund, Qumra Capital, DTCP, Pitango Growth, and Magma.
The company declined to comment on the ongoing negotiations.
Bloomberg reported last June that AppsFlyer was considering an IPO. According to the report, AppsFlyer was looking to raise $300 million in the IPO.
At the time, Kaniel outlined in a letter the transformative potential of AI, announcing significant investments in AI tools, models, and team training.
“Even as we achieve record financial performance – profitable in 2024 for the first time, cash flow positive for over two years, and exceeding revenue, ARR, and EBITDA goals – we believe now is the right time to take this step,” Kaniel said. “While it may seem unexpected to make such changes during a period of success, it is precisely this strength, combined with our strategic leadership, that enables us to act decisively, invest in growth, and ensure AppsFlyer remains at the forefront of innovation.”
