Unity has struck a merger agreement with app monetization platform IronSource in a deal that values the company at $4.4 billion.
The engine maker has agreed to an all-stock transaction that represents a 74 percent premium on the 30-day average exchange rate.
The Unity board has also authorized a share buyback program of up to $2.5 billion effective upon closing of the transaction.
Unity expects the merger to deliver a run rate of $1 billion in adjusted EBITDA by the end of 2024 and $300 million in annual EBITDA synergies by year three.
Notably, two of Unity’s largest shareholders — Silver Lake and Sequoia — have committed to investing an aggregate $1 billion in Unity in the form of convertible notes to be issued at the closing of the transaction.
Ironsource develops tools that allow mobile developers to tap into the app economy by providing them with monetization, marketing, analytics, and discovery capabilities.
Unity said the merger will allow it to form an “end-to-end platform that enables creators to more easily create, publish, run, monetize, and grow live games and RT3D content seamlessly.”
“With IronSource, Unity will take the linear process of making games and RT3D content and experiences and make it an interconnected and interactive one — creating the opportunity to innovate and improve at every step of the cycle,” reads a press release.
“What if that process was no longer ‘first create; then monetize?’ What if creators had an engine for live games that by default enabled them to gain early indicators of success for their games through user acquisition of their prototype, and gave them a feedback loop to improve their games based on real player interactions as early in the process as possible?
“Unity and IronSource’s combined offerings will uniquely position the combined company as the only game creation and growth platform for creators.”
You can learn more about the merger over on the Unity website.