Israeli app monetization developer ironSource (NYSE: IS) has announced that it is merging with video game engine Unity Software (NYSE:U). When the deal is completed, ironSource will merge into a wholly-owned subsidiary of Unity. The Israeli company has a market cap of $2.3 billion while Unity is traded on the NYSE with a market cap of $11.8 billion. The deal reflects a valuation of $4.4 billion for ironSource and its shareholders with have a 26.5% stake of the merged company, with Unity shareholders holding 73.5%. ironSource's share price is up over 50% in premarket trading.
The deal reflects a 74% premium on ironSource's average share price over the past 30 days but the merger comes one year after ironSource listed on Wall Street through a SPAC merger with a valuation of $11.1 billion.
ironSource CEO Tomer Bar Zeev said, "To succeed today, creators need an extensive set of solutions and products working in concert to power amazing user experiences and sustainable business growth. The combination of Unity and ironSource brings together every product needed to power that flywheel of growth, in a differentiated platform positioned to lead our category and beyond. We couldn’t be more excited about our shared mission to remove obstacles for creators to grow."
ironSource has developed a platform for game developers and mobile apps giving them advertising and analytical tools and other services. One of the company's cofounders CRO Omer Kaplan recently said that the concept s that there is money in apps and the aim is to be the infrastructure for this.
Unity has developed 3D software for computer games developers and among the best known games developed on its platform are Crossy Road, Kerbal Space, Rust, and Overcooked. Last November, Unity acquired visual effects company WETA, founded by the producer Peter Jackson.
The merger will help both companies maximize revenue from customers with their different emphases on computers and mobile.
Unity CEO John Riccitiello said, "We believe the world is a better place with more successful creators in it. The combination of Unity and ironSource better supports creators of all sizes by giving them all the tools they need to create and grow successful apps in gaming and other consumer-facing verticals like e-commerce. This is a step further toward realizing our vision of a fully integrated platform that helps creators in every step of their RT3D journey."
Published by Globes, Israel business news - en.globes.co.il - on July 13, 2022.
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