Israeli app monetization developer ironSource (NYSE: IS) and US 3D computer games platform Unity Software (NYSE: U) have completed the merger, which they first reported in June.
The merger between ironSource and Unity is an all-share deal with ironSource receiving 0.1089 of a Unity share for each of its own shares. When the ironSource - Unity merger was originally announced, it was at a valuation of $4.4 billion for ironSource ($4.33 per share) and a premium of 74% over its average share price during the previous month. But as of today, the deal is worth $2.75 per ironSource share, reflecting a market cap of $2.9 billion, in full dilution.
ironSource completed its SPAC merger and began trading on Wall Street in June 2021, with a market cap of $11.1 billion, the most valuable SPAC merger involving an Israeli company. It is now completing its merger at a valuation 74% lower than its NYSE debut.
Unity CEO John Riccitiello said, "We’re happy to welcome ironSource to the Unity family and get a step closer to our goal of being the leading platform for a world with more creators in it. Together, we offer a complete ecosystem for developers to successfully realize and achieve their goals - no matter where they are in the development cycle."
ironSource CEO Tomer Bar-Zeev added, "The driving force behind this industry-changing merger is to create more value for developers across the entire development journey. We are very excited about the road ahead as we begin integrating our product portfolios more deeply and strengthening the feedback loop between creating great games and growing them into successful businesses. In doing so, we’ll be able to create a world where more creators are more successful than ever before."
ironSource will now hold a 27% stake in Unity and Bar-Zeev, and other ironSource directors Shlomo Dovrat (Viola) and Outbrain co-CEO David Kostman will sit on ironSource's board.
Jefferies acted as sole financial advisor to ironSource on its merger with Unity.
Published by Globes, Israel business news - en.globes.co.il - on November 7, 2022.
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