Unity merges with IronSource in all-stock deal

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Real-time 3D content creating platform Unity, and ironSource,  a mobile publishing platform, have entered into a definitive agreement under which ironSource will merge into a wholly-owned subsidiary of Unity via an all-stock deal.

Once closed, current Unity stockholders will own approximately 73.5% and current ironSource shareholders will own approximately 26.5% of the combined company, according to a statement by the companies.

Upon closing of the merger, ironSource chief executive Tomer Bar-Zeev will join Unity’s board of directors, and serve as a member of Unity’s executive leadership team. In addition, two additional ironSource directors are expected to join the Unity board. ironSource’s headquarters in Israel will serve as an additional global hub for Unity, say the companies.

The proposed all-stock transaction has been approved by the boards of directors of both companies, is expected to close during Unity’s fourth quarter of 2022 subject to customary closing conditions.

Morgan Stanley served as lead financial advisor to Unity. Goldman Sachs also served as financial advisor to Unity, and Morrison & Foerster and Herzog Fox & Neeman served as its legal advisors. Jefferies served as exclusive financial advisor to ironSource, and Latham & Watkins and Meitar Law Offices served as its legal advisors.

[Image courtesy: Unity]