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ironSource Seeks Public Listing Debut with Thoma Bravo SPAC

UTC by Godfrey Benjamin · 3 min read
ironSource Seeks Public Listing Debut with Thoma Bravo SPAC
Photo: Depositphotos

ironSource serves about 2.3 billion monthly active users globally, and the firm grew its revenue by 83% year-over-year to $332 million

Tel Aviv-based Israeli software company, ironSource has announced plans for its public listing through a merger with Thoma Bravo Advantage (NYSE: TBA), a Special Purpose Acquisition Company (SPAC), in a bid to debut a platform that serves as a backbone for developers in today’s app economy.

Per the official announcement, the ironSource and Thoma Bravo transaction value the former company at a pro forma equity value of $11.1 billion, and the deal is backed by a $1.3 billion worth of funding led by Tiger Global Management, LLC, Counterpoint Global (Morgan Stanley), Nuveen, LLC, Hedosophia and an affiliate of Thoma Bravo amongst others.

“Joining forces with Thoma Bravo Advantage to bring ironSource to the public markets presents an opportunity to partner with the world’s leading software investor to achieve the next level of growth,” said Tomer Bar Zeev, CEO, and co-founder of ironSource. “Despite our previous progress pursuing a traditional IPO, when we met with Thoma Bravo Advantage we found an alignment of vision and shared conviction about the long-term growth we can drive at ironSource that made them the perfect partner as we take this next step in growing our company, and the market as a whole.”

ironSource has recorded impressive growth in the emerging app economy, powering the business growth of 87% of the top 100 games. Besides the accolade the firm has received with respect to its support for developers embracing its offering, “14 of the 19 games published through the ironSource platform were ranked in the top 10 most downloaded games on either the Apple App Store or Google Play Store over the course of 2020,” the company said in the merger announcement.

By the books, ironSource serves about 2.3 billion monthly active users globally, and the firm grew its revenue by 83% year-over-year to $332 million, and 94% from 291 customers with more than $100,000 of annual revenue, a dollar-based net expansion rate of 149%, and adjusted EBITDA margins of 31%.

ironSource Public Listing and the Thoma Bravo Advantage

The merger of Thoma Bravo Advantage with ironSource to aid the latter achieve its public listing plans will usher in a lot of “advantages” for the Israeli company as the former is set to provide the financial and operational support to help scale the combined entity to win more grounds.

“ironSource is a one-of-a-kind software company that combines an innovative, high-growth franchise with a deeply experienced management team that has a track record of success in a rapidly expanding market,” said Robert Sayle, CEO of Thoma Bravo Advantage, as well as a partner at Thoma Bravo. “We are thrilled to be partnering with ironSource as it enters the public markets and to be able to provide Thoma Bravo’s deep software expertise and financial support to the company as it continues its growth journey.”

The merger procedures are scheduled to be completed in the second quarter of this year, and upon completion of the transaction, the combined company will retain the ironSource Ltd. name. Other notable firms that are reportedly considering a public market debut through a SPAC merger include social trading platform eToro.

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