Blackstone is considering various strategic options for Liftoff, including a sale, which could value the mobile app marketing provider at over $4bn, including debt, according to a report by Reuters citing two sources familiar with the matter.
The California-based company is collaborating with investment banks Goldman Sachs and Jefferies to explore its alternatives, including the possibility of an initial public offering, the unnamed sources have said, cautioning that these discussions are in the early stages, and no deal is guaranteed.
Liftoff, which was formed through a merger of Vungle and Liftoff facilitated by Blackstone, provides a platform for mobile developers to build, advertise, and monetise their apps. Blackstone acquired Vungle in 2019 and invested in Liftoff the following year.
Blackstone aims to secure a valuation for Liftoff of more than 10 times the company’s 12-month earnings before interest, taxes, depreciation, and amortization (EBITDA) of $350m. Liftoff currently generates around $650m in annual revenue. Liftoff’s current clients include major companies such as Amazon, PayPal, and Lyft, according to its website.
Liftoff previously considered an IPO in late 2021, but the plan was shelved when equity capital markets froze after Russia’s invasion of Ukraine in early 2022, the sources said.
Blackstone, the world’s largest alternative asset manager, had more than $1.1tn in assets under management as of the end of September. The firm anticipates an improved dealmaking environment and a resurgence in equity capital markets, which it hopes will enable it to sell and exit more than twice the number of private equity investments this year.
