Nasdaq has added another SPAC deal to its tally with ironSource, a business platform for the app economy, which has entered into a definitive agreement to merge with a group of investors led by Thoma Bravo Advantage (NYSE: TBA) (“TBA”), a publicly-traded special purpose acquisition company.
The transaction values ironSource at a pro forma equity value of $11.1 billion, and is supported by a $1.3 billion oversubscribed Class A ordinary share PIPE.
The PIPE was led by an affiliate of Thoma Bravo, L.P. (“Thoma Bravo”), as well as investments from Tiger Global Management, LLC, Counterpoint Global (Morgan Stanley), Nuveen, LLC, Hedosophia, Wellington Management, The Baupost Group, and certain funds managed by Fidelity Investments Canada ULC and other institutional investors.
Upon closing of the transaction, the combined company will operate under the ironSource name.
What’s ironSource’s SPAC growth story?
ironSource claims that it powers the business growth of 87% of the top 100 games, and has been ranked multiple times as one of the top 3 platforms for driving both quality and scaled user growth by leading industry indexes.
In addition, 14 of the 19 games published through the ironSource platform were ranked in the top 10 most downloaded games on either the Apple App Store or Google Play Store over the course of 2020, and one of them – Join Clash – was the most downloaded game in the world in February 2021.
“Our solutions cover the entire game growth cycle, from growing your user base, to generating revenue to reinvest in growth, and then analyzing and optimizing the entire cycle to drive profitability,” said Omer Kaplan, CRO and co-founder of ironSource.
“Using our platform, game developers are able to unlock a flywheel of continuous growth, and since our business model is aligned with our customer’s success, as they grow, we do too. While this cycle is most often leveraged by mobile games, it’s easily transferable to apps outside of gaming, and today 16% of our customers with more than $100,000 of annual revenue are already from industries beyond games,” said Kaplan.
|ironSource, a business platform that enables mobile content creators to prosper within the app economy, and will combine with Thoma Bravo Advantage at an implied pro forma equity value of approximately $11.1 billion|
|•||Transaction is expected to provide up to $2.3 billion in cash proceeds (a portion of which will be used for purchases from ironSource equity holders), including an oversubscribed PIPE of $1.3 billion and $1 billion of cash held in the trust account of Thoma Bravo Advantage, assuming no redemptions by public shareholders|
|•||After giving effect to the transaction (and assuming no redemptions by public shareholders), the company is expected to have approximately $740 million of unrestricted cash|
|•||An affiliate of Thoma Bravo, L.P. has committed $300 million to the PIPE; Orlando Bravo will join ironSource’s Board of Directors at transaction closing|
|•||Top-tier investors anchoring the PIPE include funds and accounts managed by Tiger Global Management, LLC, Counterpoint Global (Morgan Stanley), Nuveen, LLC, Hedosophia, Wellington Management, The Baupost Group, and certain funds managed by Fidelity Investments Canada ULC|
For the full SEC announcement read more here.
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