Israeli game and app developer platform ironSource is set to complete its SPAC merger next week and list on Wall Street at a company valuation of $11.1 billion - the largest of the SPAC mergers agreed this year with Israeli tech companies. Yesterday the shareholders of Thoma Bravo Advantage, the SPAC with which ironSource is merging, approved the merger by a clear majority of 96%, and ironSource will begin trading on the NYSE on June 29 under the IS ticker.
ironSource was founded in 2011 by its CEO Tomer Bar-Zeev and brothers Roi, Eyal and Itay Milrad. Thoma Bravo Advantage is a company set up by US private equity firm Thoma Bravo. The merger will provide up to $2.3 billion in cash proceeds, including an oversubscribed PIPE (private investment in public equity) of $1.3 billion.
The company's existing shareholders including employees will sell shares worth $1.5 billion and $800 million will be injected into ironSource. Among the shareholders is Viola founder and general partner Shlomo Dovrat who after the merger will hold a 7.1%-8.2% stake in the company. Other major shareholders include CVC, which bought shares in 2019 for $1.55 billion and after the merger will have a 24.3%-28% stake. The four founders each have stakes of 5.7%-7.3%. Haim Saban, who invested in the company through Saban Ventures in 2014 has a 0.5% stake and reportedly made the introduction between ironSource and the SPAC.
Dovrat, a director of ironSource, told a conference in Israel earlier this week that there is an Israeli company due to go public next week, which would make over 200 of its employees millionaires in dollar terms.
ironSource had revenue of $332 million in 2020, up 83.1% from 2019 and net profit of $95.3 million, up from $83.9 million in 2019. In the first quarter of 2021 revenue was $120 million and net profit was $10.2 million.
Published by Globes, Israel business news - en.globes.co.il - on June 23, 2021
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