Israel’s IronSource Valued at $4.4B in Merger With US Gaming Platform Unity

Israeli app monetization firm ironSource is to merge with US gaming giant Unity in an all-stock deal that values it at $4.4 billion.

Unity announced details of the deal on Wednesday. Shareholders in ironSource will have a 26.5 percent stake in the company according to a Ctech report.

At the completion of the deal, ironSource will merge into a wholly-owned subsidiary of Unity. The companies expect the transaction to close in the fourth quarter, according to a joint statement.

“We believe the world is a better place with more successful creators in it. 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,” said John Riccitiello, CEO of Unity, “This is a step further toward realizing our vision of a fully integrated platform that helps creators in every step of their RT3D journey. We look forward to welcoming Tomer Bar-Zeev, the CEO of ironSource, and the rest of ironSource’s talented team into the Unity family.”

While Israel produced at least 50 new unicorns in the first half of 2021, according to TechCrunch, the ones that went to IPO (initial public offering) experienced losses in valuation, due to the downturn in the economy. IronSource went public via SPAC (special purpose acquisition company) in March 2021.

“To succeed today, creators need an extensive set of solutions and products working in concert to power amazing user experiences and sustainable business growth,” said Tomer Bar-Zeev, CEO of ironSource. “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.”

The deal will bring together the Unity game engine and editor, Unity Ads, and the rest of Unity Gaming Services (UGS) with ironSource’s best-in-class mediation and publishing platforms, giving developers a seamless and interoperable way to create, grow, and monetize their creations across their lifecycle, according to the statement.