Mobile monetization company IronSource, which earns most of its revenue from gaming companies, said today that it would go public on Tuesday morning through a special purpose acquisition company (SPAC). When the company announced the deal in March, it noted that Espac valued IronSource at $11.1 billion, although tomorrow we will discover how much the company will trust investors. The deal is driven by the popularity of mobile games and apps.
Israel IronSource-based Tel Aviv says it will increase the amount of cash for both shareholders and the company through it, including revenue from SPAC (a faster way to reach the public than the initial public offering) and additional private investment. -Spacks have become a popular way for fast-moving companies to reach out to the public without the hassle of a traditional IPO. SPACs are founded by managers who raise money in blind public institutions and investors do not know how they are investing their money?
The SPAC then finds a suitable company for consolidation, thus a private company is publicly accepted in a way that is faster than the initial public offer process. SPAC deals are often combined with PIPEs to raise money from recognized investors to strengthen trust in the contract. Ironsource will be merged with Thomas Bravo Advantage (currently traded under the TBA, the symbol of the New York Stock Exchange), a platform for the application economy, he says. Social casino game maker Pletica has become the second-largest Israeli gaming company to enter the public market, raising $1.9 billion after it was valued at $11.4 billion in an IPO in December.
Ironsource reports that its mobile monetization platform powers more than 87% of the top 100 mobile games. IronSource wants to trade under the stock symbol “IS”. In March, Ironsource reported that it had revenue $332 million in 2020 revenue and posted $104 million in adjusted earnings before interest, taxes, depreciation and deductions (EBITDA).
Revenue in 2020 increased by 83% compared to 2019 and adjusted the EBITDA margin of 31%. The company serves more than 2.3 billion monthly active users at its global customer base. IronSource said its core address market is expected to grow to $41 billion by 2022. The transaction will provide $2.3 billion in cash earnings (part of which will be used to purchase IronSource shareholders), including an oversubscribed PIPE and a discount from the public’s shareholders.