Perion Network's (PERI) board approved a limited duration rights plan designed to prevent hostile takeovers.

The board believes the share price doesn't reflect "its intrinsic value and its long-term growth strategy and potential," and participants in the advertising technology sector may see an "attractive acquisition target," the company said Thursday in a statement.

Perion plans to issue one right for each ordinary share outstanding at the close of business on April 14.

The rights would become exercisable only if an entity gets beneficial ownership of 13% or more of Perion's shares in a deal not approved by the board, the company said.

In that event, each holder of a right, with the exception of the acquiring entity, would be able to buy 0.5 share at $0.01 apiece, Perion said.