Cross-platform game engine Unity announced today that it is merging with Tel Aviv-based app business platform ironSource to strengthen its technologies for creators of all sizes.
Following the merger deal which is expected to close during Unity’s fourth quarter in 2022, ironSource will merge into a wholly-owned subsidiary of Unity and the co-founder and CEO Tomer Bar-Zeev will join Unity’s Board of Directors, along with two other ironSource directors.
The integration of Unity game engine, Unity Ads and Unity Gaming Services with ironSource’s solutions will enable the combined company to ‘’transform and streamline how live games, RT3D apps and services are made by turning today’s linear creation and growth process into a deeply connected and interactive one’’, the companies said in a statement.
Once the deal is closed, Unity shareholders will own nearly 73.5% and ironSource shareholders will own approximately 26.5% of the new combined company.
“We believe the world is a better place with more successful creators in it. The combination of Unity and ironSource better supports creators of all sizes by giving them all the tools they need to create and grow successful apps in gaming and other consumer-facing verticals like e-commerce,” said Unity CEO, John Riccitiello. “This is a step further toward realizing our vision of a fully integrated platform that helps creators in every step of their RT3D journey. We look forward to welcoming Tomer Bar-Zeev, the CEO of ironSource, and the rest of ironSource’s talented team into the Unity family.”
According to the announcement, the combined company expects to generate a $1 billion run rate in Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) by the end of 2024.
Last year, ironSource went public through a $11 billion SPAC merger. In the new merger deal, the mobile monetization company is being valued at approximately $5 billion.
“To succeed today, creators need an extensive set of solutions and products working in concert to power amazing user experiences and sustainable business growth,” said ironSource CEO Tomer Bar-Zeev. “The combination of Unity and ironSource brings together every product needed to power that flywheel of growth, in a differentiated platform positioned to lead our category and beyond. We couldn’t be more excited about our shared mission to remove obstacles for creators to grow.”