Thoma Bravo Advantage SPAC to merge with ironSource in USD11.1bn deal

ironSource, an app-focused business platform, is to merge with Thoma Bravo Advantage (TBA), a publicly-traded special purpose acquisition company (SPAC). 

The transaction values ironSource at a pro forma equity value of USD11.1 billion, and is supported by a USD1.3 billion oversubscribed Class A ordinary share PIPE led by an affiliate of Thoma Bravo (Thoma Bravo), as well as investments from Tiger Global Management, LLC, Counterpoint Global (Morgan Stanley), Nuveen, LLC, Hedosophia, Wellington Management, The Baupost Group, and certain funds managed by Fidelity Investments Canada ULC and other institutional investors. Upon closing of the transaction, the combined company will operate under the ironSource name.
 
ironSource provides the most comprehensive business platform for the app economy, designed to enable any app or game developer to turn their app into a scalable, successful business by helping them to grow and engage their users, and monetise and analyse their business through multiple channels, including unique on-device distribution through partnerships with leading telecom operators and OEMs such as Orange, Vodafone and Samsung. In 2020, ironSource grew revenue 83 per cent year-over-year to USD332 million, with 94 per cent from 291 customers with more than USD100,000 of annual revenue, a dollar-based net expansion rate of 149 per cent, and adjusted EBITDA margins of 31 per cent. The company serves over 2.3 billion monthly active users across its global customer base.
 
As a public company, ironSource is expected to benefit from the financial and operational support of Thoma Bravo – one of the most experienced and successful software investors in the world. With a track record of over 300 software investments, Thoma Bravo can provide ironSource with unparalleled industry expertise and a global network.
 
“Joining forces with Thoma Bravo Advantage to bring ironSource to the public markets presents an opportunity to partner with the world’s leading software investor to achieve the next level of growth,” says Tomer Bar Zeev, CEO and co-founder of ironSource. “Despite our previous progress pursuing a traditional IPO, when we met with Thoma Bravo Advantage we found an alignment of vision and shared conviction about the long-term growth we can drive at ironSource that made them the perfect partner as we take this next step in growing our company, and the market as a whole.”
 
“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,” says Orlando Bravo, Chairman of the Board of Directors of Thoma Bravo Advantage, and founder and managing partner of Thoma Bravo. “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. We look forward to partnering closely with Tomer and the talented ironSource team in this exciting next chapter for the company.”
 
“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,” says Robert (Tre) Sayle, CEO of Thoma Bravo Advantage, and a partner at Thoma Bravo. “We are thrilled to be partnering with ironSource as it enters the public markets and to be able to provide Thoma Bravo’s deep software expertise and financial support to the company as it continues its growth journey.”