According to the press release, Unity’s development tools and IronSource’s monetization tools combine to form a complete platform that provides creators with everything they need to make and monetize games. The all-stock transaction values IronSource at $4.4 billion (a 74% premium). Under the terms of the agreement, each ironSource will be exchanged for 0.1089 Unity shares, and Unity will own 73.5% of the combined company. The remaining 26.5% will be held by ironSource shareholders.
To reduce capital dilution, Unity’s board of directors approved a share repurchase program of up to $2.5 billion, expected to take effect after Unity’s pre-tax transaction closes at the end of last quarter. The boards of both companies have approved the deal, and all that’s missing is a green light from shareholders and competition regulators.
Unity also adjusted its full-year 2022 revenue forecast to between $1.3 billion and $1.35 billion. While the company’s revenue is growing steadily, Unity still doesn’t know how profitable it is, just posting losses before or after the IPO doesn’t help, and hasn’t stopped a slew of acquisitions to scale its services (Parsec, SyncSketch, Weta Digital , Ziva Dynamics).
While waiting to discover how ironSource and its 1,400 employees will transform the group’s economics, the press release highlights the synergy the two teams will create, as does the presentation here for fans.
“The combination of Unity and IronSource can better support creators of all sizes, giving them all the tools they need to build and grow successful applications in gaming and other industry-focused verticals.Unity CEO John Riccitiello commented.
“To succeed today, creators need a broad set of solutions and products that work together to drive amazing user experiences and sustainable business growth. The combination of Unity and IronSource brings together all the products needed to drive this growth lever. We couldn’t be more excited about our shared mission to remove barriers to creator growth.” added IronSource CEO Tomer Bar-Zeev.
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