Thoma Bravo SPAC Agrees to Take IronSource Public


(Bloomberg) — Thoma Bravo’s blank-check agency has reached an settlement to take app software program firm ironSource public by a merger that values the mixed enterprise at $11.1 billion.

Thoma Bravo Advantage, a particular goal acquisition firm, or SPAC, will assist fund the take care of $1.Three billion of recent funding from a gaggle of blue-chip asset managers together with Tiger Global Management, Wellington Management and Seth Klarman’s Baupost Group, in accordance to an announcement Sunday, confirming a Bloomberg News report.

Under the phrases of the deal, ironSource shareholders will obtain $10 billion, together with $1.5 billion of money and a majority of shares within the mixed firm. ironSource is predicted to have $740 million of money upon completion.

Orlando Bravo, founder and managing accomplice of Thoma Bravo, the personal fairness large behind the SPAC, will be part of the board of ironSource.

“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,” Bravo stated within the assertion.

ironSource is uncommon amid the current wave of SPAC targets because it’s already worthwhile; the corporate had earnings earlier than curiosity, tax, depreciation, and amortization of $104 million in 2020, in accordance to the assertion.

The Tel Aviv-based firm was began by eight founders in 2010 and supplies software program utilized by app builders and telecommunications operators. All the founders are anticipated to keep on after the take care of Thoma Bravo Advantage and can maintain super-voting shares, giving them a five-to-one ratio, in accordance to folks acquainted with the matter, who requested to not be recognized as a result of the main points aren’t public.

Deal Structure

The construction of the deal is in step with Thoma Bravo’s personal fairness mannequin.

Under Bravo, the agency has constructed a fame for getting cloud software program corporations, preserving present administration in place and backing them in a far more akin to enterprise capital. It is a light-touch mannequin that runs counter to the standard personal fairness knowledge of economic engineering to ship higher returns.

ironSource was within the superior levels of its preliminary public providing roadshow when its chief govt and co-founder, Tomer Bar Zeev, was launched to Bravo in early February, the folks stated. The two determined to pursue the deal, leaving ironSource to abandon its IPO plans and Thoma Bravo Advantage to nix discussions with different potential SPAC targets.

In 2019, funds managed by CVC Capital Partners acquired a minority stake in ironSource for greater than $400 million.

Thoma Bravo Advantage raised $1 billion in a January preliminary public providing. Bravo is the SPAC’s chairman and Robert “Tre” Sayle is CEO.

This month, the personal fairness agency introduced a $2.four billion deal to take knowledge integration and integrity agency Talend SA personal and is shut to a $3.7 billion acquisition of economic software program enterprise Calypso Technology, Bloomberg News has reported.

The ironSource deal is slated to shut within the second quarter. Goldman Sachs Group Inc., Jefferies Financial Group Inc. and Citigroup Inc. suggested ironSource on the transaction.

(Updates with particulars from the assertion beginning in first paragraph)

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