IronSource, the Israel-based app monetisation software provider backed by conglomerate Access Industries, agreed a reverse merger with a special purpose acquisition company yesterday at an $11.1bn pro forma equity valuation.
The company is joining forces with Thoma Bravo Advantage, which is sponsored by private equity firm Thoma Bravo, and will acquire the listing on the New York Stock Exchange it received in a $900m initial public offering in January this year.
A Thoma Bravo affiliate is leading a $1.3bn private investment in public equity deal supporting the transaction, investing with Morgan Stanley’s Counterpoint Global unit, Tiger Global Management, Nuveen, Hedosophia, Wellington Management, Baupost Group and funds managed by investors including Fidelity Investments Canada.
IronSource provides software tools that help app developers – particularly mobile game developers – monetise their products and engage more effectively with their users, by adding specific touchpoints where relevant content can be delivered.
Omer Kaplan, IronSource’s co-founder and chief revenue officer, said: “Our solutions cover the entire game growth cycle, from growing your user base, to generating revenue to reinvest in growth, and then analysing and optimising the entire cycle to drive profitability.
“Using our platform, game developers are able to unlock a flywheel of continuous growth, and since our business model is aligned with our customer’s success, as they grow, we do too.
“While this cycle is most often leveraged by mobile games, it is easily transferable to apps outside of gaming, and today 16% of our customers with more than $100,000 of annual revenue are already from industries beyond games.”
IronSource increased revenue 83% in 2020 to $332m. The transaction comes after private equity firm CVC Capital Partners’ CVC Funds vehicle invested $400m through a late 2019 deal valuing it above $1bn.
Access Industries had provided $25m of the $105m in series A funding the company raised at a $1bn valuation in 2015, investing alongside Saban Capital Group. It has named Viola and Redline Capital as investors, and 83North, SAIF Partners and Michael Van Swaaij are also shareholders.
