ironSource goes public after $11 billion SPAC merger

Israel-based mobile monetization firm ironSource began trading on the New York Stock Exchange on Tuesday after closing its merger with a SPAC company backed by American private equity firm Thoma Bravo. 

The IPO comes three months after the company announced its merger with the special purpose acquisition company Thoma Bravo Advantage.

ironSource said that the deal provides the adtech company with $2.3 billion in cash proceeds, including a PIPE (private investment in public equity) of $1.3 billion and $1 billion of cash held in Thoma Bravo Advantage’s trust account. 

“The reason we’re doing it now, adding a lot of cash to the balance sheet and having this currency, partnering with Thoma Bravo, is to make sure we have all the ammunition, we need to be the market consolidator,” ironSource Co-founder and Chief Executive Tomer Bar ZeevBar Zeev told Reuters.

Under the symbol “IS”, trading began at $11.25 per share, but was down 1.79% by midday. 

In the first quarter of 2021, ironSource reported $119.7 million in revenue, up 96% year-over-year. The expected revenue for fiscal year 2021 is between $480 million and $490 million. Last year, the Israeli firm grossed $332 million in revenue with a 83% Y/Y increase.

The mobile advertising & monetization platform ironSource acquired ad quality measurement platform Soomla in January and creative management platform Luna Labs in February 2021.