IronSource, an Israel-based content engagement software provider that counts diversified conglomerate Access Industries as an investor, agreed to an investment of more than $400m by private equity firm CVC Capital Partners, yesterday.
The cash will be provided by the firm’s CVC Funds vehicle and will value IronSource at more than $1bn according to TechCrunch, which was told by the company that recent reports placing the size of the round at $450m and its valuation at $1.55bn were inaccurate.
Founded in 2009, IronSource provides user acquisition and engagement software for mobile app producers, mobile device manufacturers and telecommunications networks. It said it plans to put the funding toward growth in the mobile advertising and gaming technology space.
Tomer Bar Zeev, IronSource’s co-founder and CEO, said: “We are witnessing the creation of a sector, gametech, which supports this growing ecosystem, with tailor-made tech solutions such as advertising, marketing, analytics, market intelligence, [customer relationship management] and more.
“Our continued investment in this industry is part of a wider goal to be the go-to partner for any game developer looking to scale their game business.”
Calcalist reported earlier in the week that the deal would include about $100m of dividends for IronSource shareholders but that has not been confirmed. Access Industries invested $25m in the company through a $105m series A round in 2015 at a $1bn valuation.
Saban Capital Group also backed the 2015 round, and IronSource has identified Redline Capital and Viola Group as also being investors, while 83North, SAIF Partners and Michael Van Swaaij gained stakes through its all-share acquisition of Supersonic the same year.
