Perion Network (PERI) said it acquired artificial intelligence advertising company Greenbids for $27.5 million in cash to support its advertising technology platform.

The company said the deal also includes a two-year earnout of up to $22.5 million and $15 million in employee retention incentives. Greenbids' software, which creates custom bidding algorithms for digital ad platforms, will be integrated into Perion's Perion One suite, the company said.

Shares of the company were up more than 7% in recent Tuesday premarket activity.