ironSource (IS) will acquire Tapjoy

ironSource (IS) Price = $11.71, Market Cap = $11.7 billion

From VentureBeat: IronSource said it plans to acquire mobile advertising and app monetization company Tapjoy for $400 million.
The deal is part of an ongoing consolidation trend in the mobile marketing ecosystem as growth, active investments, and industry disruption change the status quo of the industry.

From The Fly: “ironSource will acquire Tapjoy for an aggregate purchase price of approximately $400M, financed with cash from the balance sheet. “Tapjoy experienced substantial revenue growth and is expected to generate approximately $81M in net revenues in calendar year 2021. Tapjoy is highly profitable and the transaction is accretive to ironSource in CY2022,” said the company. The transaction is expected to close by the end of March 2022.

With the acquisition, Tapjoy’s technology will be integrated into IronSource platform.

“IronSource has a long history of successful inorganic growth,” said CEO and co-founder of IronSource Tomer Bar Zeev.

“We plan to continue being acquisitive in the market to build out the only comprehensive, customer-centric business platform in the App Economy.”

IronSource has made a number of acquisitions throughout the year, such as Soomla in January and Luna Labs earlier this month.

Link to release: https://www.businesswire.com/news/home/20211014005628/en/iro…

Acquisition related IR presentation: https://s28.q4cdn.com/283122156/files/doc_presentation/10/Ta…

Introduced to this board here: https://discussion.fool.com/introducing-ironsource-is-34909134.a…

Bert wrote favorably about ironSource last month.

Next earnings report will be November 10, 2021 08:30 AM ET

My take: ironSource is growing fast and is profitable. This acquisition will be done with cash and should be accretive. I am relying heavily on Thoma Bravo, which has done about 300 software deals, to make this industry consolidation play work.

Long IS

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