App Software Platform ironSource To Go Public Via SPAC

ironSource, which helps developers scale apps, is going public by merging with special purpose acquisition company (SPAC) Thoma Bravo Advantage in a transaction that values the emerging company at about $11.1 billion, according to a press release.

SPACs offer an increasingly popular way for privately-held businesses to convert into publicly-traded companies.

Tel Aviv, Israel-based ironSource stated in the release that in 2020, it earned $104 million on revenue of $332 million, marking year-over-year growth of 83 percent. The company also said its “core addressable market [is] projected to grow to as much as $41 billion by 2025.”

The transaction will produce about $2.3 billion in cash proceeds, the release stated, and after certain payments, unrestricted cash of about $740 million.

“As one of the fastest-growing and most innovative platforms for building and scaling businesses in the app economy, ironSource is well-positioned for continued success as a public company,” Orlando Bravo, chairman of the board of Thoma Bravo Advantage, as well as a founder and managing partner, said in the release. “With a full suite of solutions across the app growth life cycle — and a unique combination of scale, business growth and profitability — we expect ironSource to further its market leadership position as a public company.”

Thoma Bravo Advantage CEO and Partner Robert Sayle added in the release: “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.”

Orlando Bravo will join ironSource’s board of directors when the transaction closes, according to the release.

Among investors involved in the transaction, the release stated, are funds managed by: Tiger Global Management, Counterpoint Global (Morgan Stanley), Nuveen, Hedosophia, Wellington Management, The Baupost Group, and some Fidelity Investments funds.