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Unity Announces Merger Agreement with ironSource

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Unity Announces Merger Agreement with ironSource
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Unity, the world’s leading platform for creating and operating interactive, real-time 3D (RT3D) content, and ironSource, a leading business platform that empowers mobile content creators to turn their apps into scalable, successful businesses, announced that they have entered into a definitive agreement under which ironSource will merge into a wholly-owned subsidiary of Unity via an all-stock deal, where each ordinary share of ironSource will be exchanged for 0.1089 shares of Unity common stock. Once closed, current Unity stockholders will own approximately 73.5% and current ironSource shareholders will own approximately 26.5% of the combined company. The companies’ complementary offerings create a unique end-to-end platform that allows creators to create, publish, run, monetize, and grow live games and RT3D content seamlessly.

“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 John Riccitiello, CEO of Unity. “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.”

The end-to-end platform synergy from the combination of the companies will enhance Unity’s offerings for creators of all sizes. Together with ironSource, Unity will 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. By integrating creation and growth more tightly, creators will be able to leverage data on audience feedback to improve content from the earliest stage in the creation process, and throughout the content lifecycle. This will unlock a flywheel where data from growth feeds improvements in content which in turn drives more business success for the content or app.

“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 Tomer Bar-Zeev, CEO of ironSource. “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.”

The deal will bring together the Unity game engine and editor, Unity Ads, and the rest of Unity Gaming Services (UGS) with ironSource’s best-in-class mediation and publishing platforms, giving developers a seamless and interoperable way to create, grow, and monetize their creations across their lifecycle. In the near term, ironSource’s mediation platform will leverage the combined strength of the two companies’ ad networks to deliver increased user reach and data scale, and provide an increased return on ad spend to advertisers. Telcos will also benefit from the combination of Unity and ironSource, which will provide them with enhanced opportunities to leverage interactive gaming and RT3D experiences on-device.

In addition to delivering benefits for creators, this transaction also provides significant benefits to shareholders. The combined company is expected to generate a run rate of $1 billion in Adjusted EBITDA by the end of 2024.

In connection with the merger, Unity’s Board of Directors have also authorized a 24-month share buyback program of up to $2.5 billion, effective upon closing of the merger, which is expected to reduce dilution caused by the transaction.

Silver Lake and Sequoia have fully committed to purchase an aggregate of $1 billion in convertible notes from Unity at closing, demonstrating their belief in the value creation potential of the merger. The convertible notes to be issued to Silver Lake and Sequoia are due in 2027 and bear an interest rate of 2% per annum. The conversion price is $48.89 per share.

“Beyond our platform, we expect the combination of our business with ironSource to transform Unity’s financial profile to that of a highly profitable and free cash flow positive company,” said Luis Visoso, CFO, Unity. “We expect to generate $300 million in annual EBITDA synergies by year three.”

Management and Board of Directors

Upon closing of the merger, Tomer Bar-Zeev will join Unity’s Board of Directors and serve as a key member of Unity’s executive leadership team. In addition, two additional ironSource Directors will join the Unity Board of Directors upon closing of the transaction. Bar-Zeev and other members of ironSource’s management team, who will also assume leadership roles in the combined company, have an established track record of building a profitable, high-growth leader in the global app economy. ironSource’s headquarters in Israel will serve as an additional global hub for Unity.

Additional Transaction Details

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 and is subject to customary closing conditions, and regulatory and shareholder approval. Additional details and information about the terms and conditions of the transaction will be available in Current Reports on Form 8-K or Form 6-K, as applicable, to be filed by Unity and ironSource with the Securities and Exchange Commission.

Advisors

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

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GoodLuckMate Publishes Insightful Report on Gambling Trends in Japan

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GoodLuckMate Publishes Insightful Report on Gambling Trends in Japan
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GoodLuckMate has published a comprehensive Japanese gambling statistics and trends report on its website, revealing some interesting industry insights. The analysis was posted in October 2022 and includes a range of relevant data focused on the gambling market as well as gambling habits in Japan.

With this report, readers will get to learn more about the legality of gambling in Japan, the most popular games among Japanese players, and the demographics of gambling fans in the country. Some key figures include:

  • Size of the online casino market in Japan – $6.7 billion
  • Forecasted Japanese online casino market size by 2027 – $10.1 billion
  • Sports betting market share – 40%
  • Casinos market share – 30%
  • Pachinko is the most popular game by market share
  • Pachinko makes up about 4% of the country’s GDR

This report also reveals how Japanese consumers feel about online casinos and how popular they are among players of different age and sex groups. It also covers the issue of problem gambling in the country, highlighting that about 3.2 million Japanese players have a gambling addiction.

“We have launched a dedicated version of our website for our Japanese readers. We find the Japanese gambling market extremely intriguing, and that’s why we thought it was important to dive deeper into it through this report,” Nerijus Grenda, CEO of GoodLuckMate, said.

“Creating the report took a lot of research, but, in the end, it was worth it because it gives a complete picture of the Japanese gambling industry as it covers several essential aspects of it,” Grenda added.

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Allwyn International Reports €958.6 Million in GGR for Third Quarter

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Allwyn International Reports €958.6 Million in GGR for Third Quarter
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Allwyn International has announced its preliminary unaudited financial results for the three and nine months ended 30 September 2022 and provided an update on recent developments and current trading.

Allwyn reported €958.6m ($994.3m) in gross gaming revenue (GGR) for Q3 2022, up 11% year-on-year. The company also reported adjusted EBITDA of €319.9m, up 10% from the prior-year period. Allwyn’s adjusted EBITDA margin is at 54% as of its Q3 report, 1% down year-on-year.

Continued strong growth in online sales online channel contributed 46% of gross gaming revenue in the Czech Republic, compared with 39% in Q3 2021.

The third quarter of 2022 also saw Allwyn’s stock price rise after it was formally awarded the Fourth UK National Lottery licence, starting in February 2024.

In Q4, the company reached an agreement to acquire Camelot UK Lotteries Limited, the current operator of the UK National Lottery.

Robert Chvatal, CEO of Allwyn, said: “This quarter has seen Allwyn deliver yet another set of strong financial results. We have also continued to deliver on our inorganic growth strategies, with some exciting developments in the UK in particular. Our consolidated Gross gaming revenue increased by 11% year-on-year in the third quarter and consolidated Adjusted EBITDA increased by 10%, driven entirely by organic factors – demonstrating once again the resilience of demand for our products and of our business model.

“We also continue to deliver strong margins and generate robust free cashflows, reflecting our favourable cost structure and focus on cost and capital efficiency. The third quarter and start of the fourth quarter have also seen two milestones in the UK, which is set to become the sixth market where we operate lotteries. In September, Allwyn was formally awarded the Fourth Licence to operate the UK National Lottery for a decade starting in February 2024, following the Gambling Commission’s earlier announcement that we were the Preferred Applicant, and on 19 November we announced that we had reached agreement to acquire Camelot UK Lotteries Limited, the current operator of the National Lottery.”

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TAPPX CELEBRATES 9TH BIRTHDAY AND LAUNCHES TECHSOULOGY

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Tappx, a leading global AdTech company, proudly announces the launch of Techsoulogy, a new corporate brand that unifies a broad portfolio of companies powering solutions for digital advertising, video content, mobile apps and video gaming across mobile, desktop, and CTV platforms.

The launch of Techsoulogy coincides with the 9th birthday of Tappx, which has grown rapidly since 2013 to reach 70 staff, and is forecast to surpass EUR 20 million of revenue this year. Tappx will now become part of the Techsoulogy brand while retaining its own name and unique position in the market. This is a major milestone in the company’s story, providing coherence of branding and messaging to a set of companies that have been launched or acquired by Tappx in recent years, with a total headcount approaching 100.

Alongside Tappx, Techsoulogy will be the corporate brand for four other companies focused on multiple complementary media and entertainment verticals including video generation and monetization, contextual advertising, and mobile game development. Each has been brought under the coherent messaging architecture and visual brand identity, with their own subtle twists. The Techsoulogy brand identity was defined with the help of Collaborabrands, and brought to life with words from Fernando Beltrán, visuals from Comuniza, and digital ecosystem development from Branng. Future brands entering the group will also be part of the consistent identity.

Daniel Reina, CEO at Techsoulogy and the founder of Tappx, commented:

“We believe this new brand architecture is an ideal model for our diverse companies, providing a common thread between them and creating a framework for us to keep growing and moving into new product categories. Tappx has been the engine behind this expansion, consistently growing in revenue and headcount even through challenging economic conditions, but it’s time for it to be part of something bigger.

“This includes not being afraid to talk about our vision for how technology and humanity will interact. How can we contribute human intelligence to artificial intelligence, and what qualifies us to have our say? As Tappx, we pioneered various initiatives to create a safer, more accessible, and more transparent digital environment at the expense of short-term profit: to help publishers adopt IAB standards; select only trustworthy, direct owned and operated traffic; and enable contextual advertising that improves user experience while protecting privacy. As Techsoulogy, we will do far more.”

Fernando Saiz Camarero, CMO at Techsoulogy, added:

“This has been an extensive project that began in mid-2021 when we asked our customers and partners what they value about us. We discovered that alongside our advanced technology, we’re best known for the quality of our people, ways of working, and culture. The team is our most powerful asset, and so we came up with the name Techsoulogy to encapsulate themes of technology, humanity and knowledge. As Techsoulogy, we will constantly explore, learn and improve to achieve more together than we ever could apart.”

Tappx recorded 97% revenue growth between 2020 and 2021 and is set to grow markedly again this year, with forecasts indicating revenue of at least EUR 20 million in 2022.

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