Mobile advertising platform ironSource announced that it has agreed to acquire mobile advertising and app monetization company Tapjoy for $400 million, making it its third acquisition in 2021.
ironSource acquired mobile ad quality measurement platform Soomla in January and creative management platform Luna Labs in February. The Israei firm went public on the New York Stock Exchange on June 29 via a merger with an SPAC backed by private equity firm Thoma Bravo Advantage.
ironSource said that the acquisition is expected to strengthen the ironSource platform offering for mobile app and game developers through several areas of synergy: ironSource customers will be able to generate more revenue with greater access to diversified advertiser demand, including through the Tapjoy marketplace. In addition, customers will benefit from complementary technology allowing app developers to enrich their in-game economies; and the acquisition is also intended to increase ironSource’s SDK footprint among both apps and games, growing the company’s scale in the market.
“Our platform-based approach to serving app developers means we’re able to plug in multiple strategic additions to our software platform to add more value for customers,” said Omer Kaplan, CRO and co-founder of ironSource. “This acquisition follows that strategy, ultimately allowing us to serve our customers in the most beneficial way possible, by growing our SDK footprint, improving our monetization capabilities, and positioning our platform as a deep and integral part of the in-app and in-game economy.”
ironSource said Tapjoy experienced substantial revenue growth and is expected to generate approximately $81M in net revenues in calendar year 2021.
“We are delighted to be joining ironSource, a leading business platform for app developers,” said Jeff Drobick, CEO of Tapjoy. “Tapjoy’s technology powers monetization, user acquisition, and customer research for some of the world’s largest brands and app developers, with our SDK integrated on approximately 66,000 apps reaching over 1.6 billion monthly active users. As the App Economy continues to grow, we believe that ironSource is the ideal partner to further leverage our products and expertise for continued growth.”
The deal is expected to close in Q421/Q122.