RE: CVC Partners2 Oct 2019 19:11
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CVC to Pay $450 Million for a 25% Stake in IronSource
CVC to Pay $450 Million for a 25% Stake in IronSource
The deal, expected to be signed in the upcoming 24 hours, values the web and mobile monetization company at $1.55 billion, according to two people familiar with the matter who spoke to Calcalist on condition of anonymity
Golan Hazani
: 2019-10-02T07:34:42..
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Private equity firm CVC Capital Partners is negotiating a deal to acquire a 25% stake in web and mobile monetization company IronSource Ltd. for $450 million, according to two people familiar with the matter who spoke to Calcalist on condition of anonymity. The deal, which values IronSource at $1.55 billion, is expected to be signed in the upcoming 24 hours, the people said, adding that the company is expected to hand out $100 millions-worth of dividends to shareholders before the deal is complete.
The negotiations almost came to an unsuccessful end two months ago due to disagreements over IronSource's valuation, which has since been resolved, the people familiar with the matter said. If completed, the deal is expected to be the biggest secondary deal of an Israeli company. CVC will become IronSource's largest shareholder, but its founders will keep a controlling share with a 45%-50% stake held between them, down from the 60% they currently hold, according to the people. The company's employees, which hold options worth $25 million, will also take part in the sale.
IronSource CEO and Co-founder Tomer Bar Zeev
IronSource CEO and Co-founder Tomer Bar Zeev
The CVC sale is expected to be the last funding IronSource raises before its initial public offering, scheduled for the second half of 2020. The company, which is expected to see revenues of around $1 billon for 2019 with an EBITDA of $150 million, expected to see its revenues and profit grow by its IPO. Its net profit for 2019 is estimated at $120 million to $130 million for 2019, according to the people familiar with the matter, and the company has no debt.
Founded in 2009, IronSource was originally a download optimization software developer, which shifted its focus to rewarded ads following a series of acquisitions between 2013 and 2016. The company has received several acquisition offers in the past but rejected them due to low valuations. The company raised a single round of $105 million to date and made almost all of its nine acquisitions as stock deals. Its 2015 merger with Israel-based Supersonic created Israel's largest web company. IronSource is based in Tel Aviv with 13 addition