Unity x ironSource Merger

The world’s leading platform for operating and creating interactive real time 3D content, Unity is to acquire ironSource, a leading business platform which allows mobile content creators to scale their apps into successful businesses. In a merger to redefine the ease with which creators can view and manage the end-to-end process of development. From initial creation through to growth.

The two giants of the industry announced the merger, with ironSource becoming a wholly-owned subsidiary of Unity via an all-stock deal. With each ordinary share of ironSource traded for 0.1809 shares of common stock of Unity. With the final split at the close of deal set to 73.5% for Unity shareholders and the remaining 26.5% for current ironSource shareholders.

John Riccitiello, Unity CEO spoke of the merger as the opportunity to increase the number of successful creators in the world. “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.” Riccitiello continued “This is a step further toward realizing our vision of a fully integrated platform that helps creators in every step of their RT3D journey.”

Speaking of ironSource, Riccitiello added “We look forward to welcoming Tomer Bar-Zeev the CEO of ironSource, and the rest of ironSource’s talented team into the Unity family.”

Combining the offerings of both companies provides creators of all sizes an end-to-end platform for lifecycle management. Streamlining the process of app development whilst also building a deeply connected and interactive creation and growth process. By combining the companies Unity will also combine creation and growth. Via Unity creators will be able to leverage audience feedback from the early stages of creation and throughout the app lifecycle. Utilizing data to patch and improve content and drive growth throughout.

Bringing together ironSource’s world leading mediation and publishing platforms with the Unity game engine and editor, Unity Ads and the rest of unity Gaming Services the merger will provide an all-in-one tool to create, grow and monetize apps through the entire lifecycle. With ironSource’s mediation platform utilizing the two companies’ ad networks in the short term to provide a larger user reach and data scale, as well as an increased return on ad spend to advertisers.

“To succeed today, creators need an extensive set of solutions and products working in concert to power amazing user experiences and sustainable business growth.” Said ironSource CEO, Tomer Bar-Zeev. Bar-Zeev spoke of the merger as a unique product delivering tools necessary to power creation and growth in one platform. Stating “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."

As well as the substantial benefits for creators, there comes the benefits for shareholders. The merger will produce a combined company estimated to generate a run rate of USD$1 billion in adjusted EBITDA by close of 2024. With Unity’s Board of Director’s authorizing a 24-month share buyback program in connection with the merger. With the hope to reduce dilution by the transaction. The program will be effective upon close of the deal and will run up to USD$2.5 billion.

Unity CFO Luis Visoso stated "Beyond our platform, we expect the combination of our business with ironSource to transform Unity’s financial profile to that of a highly profitable and free cash flow positive company.” Continuing “We expect to generate $300 million in annual EBITDA synergies by year three.”

As for the board of directors, Bar-Zeev will join the Unity Board of Directors upon the closing of the merger. With two more ironSource Directors joining upon transaction closure. Bar-Zeev will play a key role in Unity’s executive leadership. With ironSource’s former headquarters in Israel serving as a new global hub for Unity.

Unity & ironSource join Miniclip & Sybo and Verve Group & Dataseat as another high profile acquisition in the recent weeks for the mobile games ecosystem.

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By Gamesforum Online