Tel Aviv-based IronSource, an advertising technology firm, is in talks with Thoma Bravo to go public through a merger via a special acquisition company (SPAC) with the US investment fund, Bloomberg reported on Monday citing people with knowledge of the matter.
Thoma Bravo Advantage, the blank check firm, is seeking to raise about $1 billion in new equity to support a transaction that values the merged entities at more than $10 billion, Bloomberg said.
The terms of the deal are not final and talks could still fail to produce anything concrete, Bloomberg said.
An IronSource representative didn’t respond to a Bloomberg request for comment. A spokesperson for Thoma Bravo also declined to comment, Bloomberg said.
In November, Israeli financial website Calcalist said that IronSource was planning an IPO of shares on the Nasdaq at a valuation of $7 billion to $8 billion in the first half of this year.
IronSource gives developers a platform to acquire users and display ads in cellphone games.
The firm, founded in 2010 by Eyal Milrad, Omer Kaplan, Tamir Carmi, Tomer Bar-Zeev, Gil Shoham and Arnon Harish, has raised $105 million to date from investors, according to Start-Up Nation Central’s database. Investors include Saban Ventures and Access Industries, according to the database. Viola Ventures also holds a 10% stake in the firm, Calcalist said.
In 2019, funds managed by CVC Capital acquired a minority stake in IronSource for more than $400 million, according to Bloomberg.