Yahoo is improving its search features through its new partnership with Perion Network Ltd. On Monday morning, they jointly announced a multi-year deal that would enable them to work together on search and distribution.

Perion Network Ltd is known for its software and applications.  The company earned recognition on its IncrediMail and Smilebox. IncrediMail is the application that enabled users to revamp their emails with cute stationary, e-cards, animations and emoticons. On the other hand, Smilebox is a program used for sharing and editing photos through desktop and mobile.

Perion has been posting steady growth since inception, particularly from partnering with big names such as Google, Bing and Ask.com. Its revenue had grown 99% from last year. It's earnings per share also increased by 8 cents from last year.

This partnership is expected to bring about specific benefits for each of them. Perion can improve its search services, since it will be powered by Yahoo technology. Yahoo expects to become cooler to use. The company has been engaged in partnerships left and right to face the stiff competition from Google.

Disclosure of the terms associated with the deal is yet to happen.