AppLovin offers to acquire Unity for $17.54Bn
Gaming software company AppLovin made an offer to buy Unity Software in a $17.54 billion all-stock deal to tap into the growing demand for three-dimensional gaming. The enterprise value of the deal is $20 billion. AppLovin will offer $58.85 for each Unity share.
Under the proposed deal, Unity will own 55 percent of the combined company’s outstanding shares, representing about 49 percent of the voting rights. Unity’s software has been used to build some of the most-played games such as Call of Duty: Mobile, and Pokémon Go, while AppLovin helps developers to grow and monetize their apps.
AppLovin hired advisers to work out an offer after Unity said it would buy ironSource in a $4.4 billion all-stock transaction. According to the proposal, Unity’s board will have to terminate the ironSource deal if it wants to pursue a combination with AppLovin.
AppLovin Chief Executive Officer Adam Foroughi said the combined company will have the potential to generate an adjusted operating profit of over $3 billion by the end of 2024. “Unity is one of the world's leading platforms for helping creators turn their inspirations into real-time 3D content,” he said.
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