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The merger will allow Unity to form an "end-to-end platform that enables creators to more easily create, publish, run, monetize, and grow live games and RT3D content seamlessly."
Unity announced that it has entered into an agreement to merge with an Israeli app monetization platform ironSource in a deal that values the company at $4.4 billion.
Under the terms of the agreement, ironSource, the company that provides a business platform for the app economy, will merge into a wholly-owned subsidiary of Unity via an all-stock deal, where each ordinary share of ironSource will be exchanged for 0.1089 shares of Unity common stock.
When the deal is closed current Unity stockholders will own about 73.5% of the combined company and current ironSource shareholders will own approximately 26.5%. The deal will also involve Silver Lake and Sequoia, the largest Unity shareholders, which will invest $1 billion in Unity in the form of convertible notes after the transaction closes.
Unity expects the merger to deliver a run rate of $1 billion in adjusted EBITDA by the end of 2024 and $300 million in annual EBITDA synergies by year three.
ironSource develops tools that provide developers of games and non-gaming apps with monetization, marketing, analytics, and discovery capabilities. According to Unity, the merger will allow the company to form an "end-to-end platform that enables creators to more easily create, publish, run, monetize, and grow live games and RT3D content seamlessly."
"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," Unity's CEO John Riccitiello commented on the deal. "This is a step further toward realizing our vision of a fully integrated platform that helps creators in every step of their RT3D journey."
ironSource CEO Tomer Bar-Zeev added: "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."