U.S. private equity firm Thoma Bravo’s blank-check company Thoma Bravo Advantage (NYSE: TBA) has reached an agreement to take Israeli mobile monetization company ironSource public through a merger that values the combined business at $11.1 billion, the companies said on Sunday.
What Happened: Thoma Bravo Advantage, a special purpose acquisition company, or SPAC, will help fund the deal with $1.3 billion of new investment from a group of blue-chip asset managers that include Tiger Global Management, Wellington Management and Seth Klarman’s Baupost Group. Bloomberg first reported the news last week, citing people familiar with the matter.
Under the terms of the deal, ironSource shareholders will receive $10 billion, including $1.5 billion of cash and a majority of shares in the combined company. ironSource is expected to have $740 million of cash upon completion.
Orlando Bravo, founder and managing partner of Thoma Bravo, the private equity giant behind the SPAC, will join the board of ironSource at the closing of the deal.
Why It Matters: Tel Aviv-based IronSource is a software company that counts app creators among its users. The company co-founded by Tomer Bar Zeev has described itself as “profitable from almost day one.”
Under Bravo, the firm has built a reputation for buying cloud software companies, keeping existing management in place and backing them in a way more akin to venture capital.
ironSource posted 2020 revenue and adjusted EBITDA of $332 million and $104 million, respectively.
Price Action: TBA shares closed at $10.82 on Friday.
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