Private equity firm CVC Capital Partners is in advanced talks to invest $450m in Iron Source, an Israel-based mobile monetisation platform backed by diversified conglomerate Access Industries, Calcalist reported today.
The deal will give the firm a 25% stake in IronSource, according to two people familiar with the matter, who said the transaction is likely to be sealed in the next 24 hours.
IronSource provides monetisation services for mobile app developers through a software offering that combines an in-app video network, a mobile advertising mediation platform and a platform that uses data to increase user acquisition.
Shareholders are set to receive some $100m in dividends through the deal, which will reportedly value IronSource at $1.55bn. It will be the fourth round of dividends paid by the company and will ensure all their investors have already received a full return on their funding, according to Calcalist.
The stake held by IronSource’s founders will be reduced from 60% to between 45% and 50% while employees will also sell shares in the transaction.
The company had closed a $105m series A round in 2015 in which $25m came from Access Industries, with additional cash from Saban Capital Group. Its existing investors include Redline Capital and Viola Group, with the latter’s stake to be cut from 13.5% to 10.1% in the sale.
IronSource merged with Supersonic, a mobile advertising platform that counted 83North, SAIF Partners and Michael Van Swaaij among its investors, in 2015 after completing its series A round.
