Unity and IronSource are to merge in a deal that values the latter company at $4.4bn.
The deal brings together Unity’s game engine, editor, Unity Ads, and several other services with ironSource’s mediation and publishing platforms.
Both companies’ stock prices have been taking a pounding of late as the fallout continues from Apple’s ATT policies.
Upon closing of the merger, IronSource CEO Tomer Bar-Zeev will join Unity’s board of directors become part of Unity’s executive leadership team. Two additional IronSource directors will join the Unity board of directors when the transaction closes. IronSource’s headquarters in Israel will serve as an additional global hub for Unity.
“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 Unity CEO John Riccitiello. “This is a step further toward realising our vision of a fully integrated platform that helps creators in every step of their RT3D journey.”
IronSource CEO Tomer Bar-Zeev added: “To succeed today, creators need an extensive set of solutions and products working in concert to power amazing user experiences and sustainable business growth. The combination of Unity and ironSource brings together every product needed to power that flywheel of growth.”
The two largest Unity shareholders, Silver Lake and Sequoia, will also invest an “aggregate $1 billion” in Unity in the form of convertible notes to be issued at closing of the transaction.
The deal is expected to close during Unity’s Q4 2022. Once closed, current Unity stockholders will own approximately 73.5% and current IronSource shareholders will own approximately 26.5% of the combined company.