Learn from Dean Takahashi, and other experts how to protect your game against pirates and cheaters.Which place does your company rank in the AI adoption curve for AI? To find out, take our AI survey.IronSource, a mobile monetization company, announced today that it will become public via a special purpose acquisition corporation (SPAC), on Tuesday morning.The company announced the deal in March. It noted that IronSource was valued by the SPAC at $11.1 billion. However, investors will soon find out how much the company is worth. This deal was prompted by the growing popularity of mobile apps and games.IronSource, based in Tel Aviv, Israel, stated that it would raise $2.15 trillion in cash proceeds through the transactions. This includes the proceeds of the SPAC, which is a quicker way to go public than an initial public offering, and an additional private investment called a PIPE or private investment in public equity.SPACs are a popular way for companies that move quickly to go public without the complications of an IPO. Managers set up SPACs to raise capital in a shell public company. Investors don't know what they are investing their money in. SPACs then find the right company to merge with and take a private company public faster than an initial public offer process. SPAC deals often combine with PIPEs in order to raise capital from well-known investors. This helps to boost confidence in the deal.IronSource and Thoma Bravo Advantage, currently traded on the New York Stock Exchange as the symbol TBA), will merge to create what it calls an app economy platform. After Playtika, a social casino game company that raised $1.9billion at a $11.4b valuation in an IPO in December, the company is now the second largest game-related Israeli company to tap the public markets. IronSource claims that its mobile monetization platform powers over 87% of the 100 most popular mobile games. IronSource will trade as IS.Financial statements of companiesImage credit: IronSourceIronSource reported in March that it had recorded 2020 revenue of $332million and adjusted earnings before interest taxes depreciation and amortization (EBITDA), of $104million.It saw a 83% increase in revenue for 2020 over 2019, and an adjustment to EBITDA margins by 31%. It serves more than 2.3 billion active users monthly across its global customer base.IronSource stated that its core market will grow to $41 billion by 2025. The transaction will generate cash proceeds of up to $2.3Billion. A portion of this cash proceeds will be used to purchase IronSource equity shareholders. This includes a PIPE oversubscribed at $1.3Billion and $1 billion in cash in the trust account Thoma Bravo Advantage.The company will have $660 million in unrestricted cash after the transaction is completed. Thoma Bravo L.P., an affiliate has contributed $300 million to the PIPE. Orlando Bravo will be joining IronSources on the closing of this deal.Image credit: IronSourceThe PIPE is made up of investors like Tiger Global Management, Counterpoint Global, Morgan Stanley, Nuveen and Hedosophia.The combined company will be known as IronSource after the transaction is closed. IronSource's CEO Tomer Bar Zeev and IronSources founder-led management will continue to run the combined company. Orlando Bravo, Chairman of Thoma Bravo Advantage and a founding partner of Thoma Bravo will join the IronSource board.IronSource is now a world-leading platform for game and app developers. Today's milestone marks a significant step forward. We are thrilled to go public and to continue our work on the platform and the app economy. This milestone is a testimony to the strength and potential of our platform. We are proud to have achieved it, and we look forward for our future as public companies. Thank you to IronSource for your hard work that brought us to this moment and to Thoma Bravo Advantage for their unwavering support.IronSource stated that its monetization platform allows any app developer or game designer to make their app a sustainable, profitable business. It helps them to monetize, analyze and grow their app through multiple channels. This includes unique distribution via partnerships with mobile operators like Orange and Samsung.IronSource reported that 94% of its 2020 revenues were from 291 customers earning more than $100,000 annually, an increase rate of 14% on a dollar basis.IronSource, a public company is expected to reap the operational and financial support from Thoma Bravo. Thoma Bravo has invested more than 300 times in software.Details about the marketImage credit: IronSourceThe app economy is one the fastest growing markets. It has millions of apps and billions of users, who spend 83% of their time using apps on their mobile devices. According to Statista, the top category in the app market is games. In 2020, the Apple App Store will have the largest number of apps. IronSource stated that it has a strong position in this category and has focused its product development and innovation on core infrastructure for mobile game developers.IronSource reported that 14 of the 19 IronSource games were among the top 10 most downloaded on the Apple App Store and Google Play Store in 2020. Join Clash was also the most downloaded game worldwide in February 2021.IronSource Sonic and IronSource Aura are the two solution suites that make up the IronSource platform. The Sonic solution suite assists developers in launching, monetizing, scaling and scaling their apps and games. The Aura solution suite allows telecom operators to enhance the user experience through new engagement touchpoints that provide relevant content throughout the device's lifecycle. This provides developers with a unique channel to distribute their apps on the device.These two suites are what make IronSource different, according to the company. The company stated that once a developer has started working with IronSource they tend to expand their use of the platform to include multiple solutions. This results in a high net expansion rate and gross customer retention.For more information, click hereImage credit: IronSourceIronSource and Thoma Bravo Advantage have unanimously approved the transaction. It is expected that the transaction will close in the second quarter 2021, subject the usual closing conditions. The deals were approved by Thoma Bravo Advantages shareholders on June 22.Thoma Bravo Advantage shares will be subjected to a 12-month lockup, with limited releases based upon the trading price of the shares after the 150th day. IronSources shareholders will also be subject to the 6-month lockup following the closing of a transaction. Thoma Bravo Advantage shares will not be affected by the early release.IronSource will be able to have a dual-class equity structure after the transaction is closed. Current shareholders of IronSource will now own Class B ordinary shares and receive five votes each share, while holders of Class A ordinary shares (including Thoma Bravo Advantages) will only get one vote per share.The company will have $740 million in unrestricted cash after the transaction is completed and any redemptions by Thoma Bravo Advantage shareholders are assumed to be non-refundable. The total consideration for IronSource shareholders will amount to $10 billion. This includes $1.5 billion cash consideration and the majority of the shares in the combined company.Jefferies, Goldman Sachs & Co. and Citigroup Global Markets were financial advisors to ironSource. They also served as placement agents for the PIPE. Latham & Watkins, Meitar Law Offices and Latham & Watkins served as IronSource's legal advisors. Thoma Bravo Advantage was represented by Kirkland & Ellis, Goldfarb Seligman & Co., Cadwalader, Wickersham & Taft, and Goldfarb Seligman & Co.
