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CVC Funds invests in ironSource

Private equity investor CVC Funds is to acquire a minority stake in mobile marketing company ironSource for over USD400 million.

“As one of the world’s most respected private equity firms, CVC has a track record of successfully partnering with companies to drive global growth,” says Tomer Bar Zeev, CEO and Co-Founder of ironSource. “As such they are the perfect partner for this next phase in our journey, as we continue to scale internationally, engage with A-class partners and invest heavily in building out our offering for game developers.”
 
Profitable from almost day one, ironSource has grown rapidly since its founding in 2009 and is on track to finish 2019 with approximately USD1 billion of revenue. Through its various technologies, the company works with a unique combination of customers including software, app and game developers, telecom operators, and mobile device original equipment manufacturers (OEMs). The company  focuses on developing technologies for app monetisation and distribution, with its core products targeting game developers.
 
The  gaming industry is experiencing rapid growth, and is on track to generate USD180 billion in 2021, with mobile gaming experiencing a 27 per cent CAGR. ironSource’s growth platform provides mobile game developers with the tools they need to grow and scale their game businesses.
 
“We’re witnessing the creation of a sector, gametech, which supports this growing ecosystem, with tailor-made tech solutions such as advertising, marketing, analytics, market intelligence, CRM and more,” says Bar-Zeev. “Our continued investment in this industry is part of a wider goal to be the go-to partner for any game developer looking to scale their game business.”
 
Another key growth driver for the company is Aura, ironSource’s solution for mobile carriers and device manufacturers. Aura provides a dynamic engagement and content distribution solution, empowering OEMs and telecoms operators to build ongoing relationships with their customers, ultimately turning those customers into engaged users. The technology is integrated on more than 120 million mobile devices globally, through partnerships with the top telecoms operators in the US and international mobile OEMs.
 
“By combining best-in-class technology with strategic acquisitions we’ve proven our ability to support the growth of our clients and create a unique experience for their users, and that’s something we plan to continue investing in moving forward,” says Bar Zeev.
 
“We are delighted to be partnering with such an innovative and exciting technology business,” says Daniel Pindur, Partner at CVC Capital Partners. “The investment in ironSource  is a unique opportunity to support a well-respected founder-led organisation to accelerate its growth. We look forward to working with Tomer Bar Zeev and his team to take the company to the next level.”
 
Sebastian Kuenne, Managing Director, CVC Growth Partners, adds: “We are very excited about CVC Funds’ first technology deal in Israel. Israel is a hub for leading edge technology companies and ironSource is a prime example. We are excited by the opportunity to partner with ironSource’s founders to continue to provide leading technology solutions to its customers.”
 
Board members at ironSource, Shlomo Dovrat, Co-Founder of Viola Ventures and Ronen Nir, GP at Viola Ventures, adds: “As the first institutional investor in ironSource, we had the honour of working with this exceptional founding team, and supporting their growth to become one of Israel’s first unicorns. We are big believers in the company’s ongoing journey to becoming a global leader and with CVC’s support, we are confident the company will sustain its rapid growth and high profitability. ironSource is a fantastic example of Viola’s commitment to backing Israeli entrepreneurs who aspire to build multi-billion dollar companies, and is an inspiration for the entire Israeli tech ecosystem.”

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