It’s official: ironSource to list via SPAC with a valuation of $ 11.1 billion

Israeli company IronSource, a platform for game and app developers, will be incorporated into SPAC Thoma Bravo Advantage (NYSE: TBA) with a valuation of nearly $ 11.1 billion from IronSource CFO Assaf Ben-Ami to “Globes” that the planned deal, which yields $ 2.3 billion to the company and its investors. , It would be “the biggest deal ever in Israel, at least as far as we can remember.” $ 800 million would go to the company and $ 1.5 billion to investors selling shares in the secondary component of the deal. Ben-Ami said that IronSource will enable all shareholders, including company employees, to sell their shares in equal proportions. IronSource employees have options up to 10% of the company, which means they will receive a combined total of about $ 150 million. The company was founded in 2011 by CEO Tomer Bar-Zeev and his brothers Roy, Eyal and Itai Millrad. Thoma Bravo Advantage is a company created by the US private equity firm Thoma Bravo (which in the past bought Imperva, and of which Shlomo Kramer was the founder, for $ 2.1 billion). The deal is expected to provide up to $ 2.3 billion in cash returns (a portion of which will be used for purchases from IronSource shareholders), including an increase in a PIPE (private investment in public equity) of $ 1.3 billion and $ 1 billion in cash held. In the Thoma Bravo Advantage Trust Account, assuming no redemptions by public shareholders. According to IVC, IronSource has so far raised $ 120 million. Its investors include: foun ders (estimated to own about a third of the company), Viola Ventures, Tal Barnoach’s Disruptive Technologies Venture Capital, 83North, Saban Ventures, Leumi Partners, and Clal Industries. According to IVC, in 2019, the CVC Capital Partners private equity fund bought about a quarter of the shares in IronSource for $ 400 million in a secondary transaction in which the company itself did not raise money. IronSource, formerly known as FoxTab, started out as a developer of Firefox add-ons. Over the years it underwent several mergers, increasing the number of its recognized founders to eight, with the addition of Arnon Harish, Tamer Karmi, Nathaniel Shadmi and Omar Kaplan. The company eventually shifted to focus on advertising in apps, and today it provides a platform that enables application developers, especially games, to incorporate ads into their products. IronSource disclosed in its offer to investors the financial details of its business. In 2020, it recorded EBITDA adjusted revenue and profit of $ 332 million and $ 104 million, respectively, increasing revenue by 83% year-on-year. The announcement of the deal states, “With IronSource’s primary addressable market expected to grow to $ 41 billion by 2025, the merger with Thoma Bravo Advantage creates a public company capable of substantial long-term growth and value creation.” Related articles IronSource In talks about floatation via SPAC with a valuation of $ 10 billion, eToro announced a merger of SPAC at a valuation of $ 10.4 billion, Thoma Bravo completed the acquisition of Imperva worth $ 2.1 billion, SPAC BYTE raised $ 300 million to target Israeli SPAC Keter1 files from the company Israeli technology to raise $ 250 million on Nasdaq “Joining with the Thoma Bravo Advantage to bring ironSource to the public market represents an opportunity to partner with the world’s leading software investor to achieve the next level of growth,” Bar Ze’ev said. “ Despite the progress we had previously made in pursuing the traditional IPO, when we met with Thoma Bravo Advantage, we found a consensus of vision and a shared conviction about the long-term growth we can drive at IronSource that has made them the ideal partner as we take the next step in growing our company and the market as a whole. “. “As one of the fastest growing and most innovative platforms for building and scaling businesses in the app economy, IronSource is well positioned to continue to succeed as a public company,” said Thoma Bravo founder and managing partner, Orlando Bravo. “With a full suite of solutions across the application growth lifecycle – and the unique combination of scale, business growth and profitability – we expect IronSource to cement its market leadership position as a public company. We look forward to closely partnering with Tomer and the talented IronSource team in this exciting next chapter for the company.” . “This is a very proud moment for us at Viola and for me personally. The company in which we were the first investors is thriving and launching to the public as one of the largest public technology companies in the history of Israel,” said Shlomo Dovrat, Viola Co-Founder. Ventures and a board member at IronSource. “We look forward to continuing to work with the amazing founding team of ironSource on their incredible journey.” Announcing the deal, states, “IronSource supports business growth with 87% of the top 100 games, and has been ranked multiple times as one of the top 3 platforms for driving both quality and user growth through leading industry indices. In addition, 14 of Out of 19 games published on ironSource among the top 10 downloaded games either on the Apple App Store or Google Play Store over the course of 2020, one of them – Join Clash – was the most downloaded game in the world in February 2021. “After the deal, assuming No redemptions by Thoma Bravo Advantage shareholders, IronSource is expected to have approximately $ 740 million in unrestricted cash. The total consideration for ironSource shareholders will be $ 10 billion, including $ 1.5 billion in cash and the majority of the combined company’s shares. The combined company will retain the IronSource Ltd. Goldman Sachs & Co. LLC, Jefferies LLC, and Citigroup Global Markets Inc. As Financial Advisors to IronSource, Latham & Watkins LLP, and Meitar | Law firms act as legal advisors to ironSource. Kirkland & Ellis LLP and Goldfarb Seligman & Co. And Cadwalader, Wickersham & Taft LLP as legal advisors to Thoma Bravo Advantage. The work of Goldman Sachs & Co. LLC and Citigroup Global Markets Inc. And Jefferies LLC as PIPE Recruitment Agents. Posted by Globes, Israel business news – en.globes.co.il – on March 22, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021