AppsFlyer halts $1.9bn sale talks after private equity bidders seek revised terms

• The deal would have valued AppsFlyer at around $1.9 billion.
• AppsFlyer’s board ultimately rejected the revised proposal after reviewing the terms with Goldman Sachs.

Marketing analytics firm AppsFlyer has halted a potential sale to private equity groups after negotiations broke down after a prospective buyer sought to revise the terms of the agreement.

As reported by CalcalisTech, US investment firm Apollo had been in talks to acquire a majority stake in the company alongside Israeli private equity fund Fortissimo Capital. 

The deal would have valued AppsFlyer at around $1.9 billion, with Apollo expected to hold roughly 70% of the acquired shares and Fortissimo the remaining 30%.

However, discussions stalled after Apollo sought to revise the terms of the agreement by introducing additional protection mechanisms into the deal.

Market pressure 

The proposed acquisition was expected to involve purchasing 50% to 60% of AppsFlyer through an Apollo-managed debt fund, in a transaction that could have reached about $1bn in total value.

AppsFlyer’s board, working with financial adviser Goldman Sachs, ultimately decided to halt the process and reject the revised offer.

The breakdown comes amid a broader decline in global software stocks this year, with the iShares Expanded Tech-Software Sector ETF down around 20% as investors weigh the potential impact of artificial intelligence on traditional software business models.

Founded more than a decade ago, AppsFlyer generates roughly $500 million in annual revenue and remains profitable. The company previously explored an IPO but shelved those plans due to slower growth, estimated at 10% to 15%.