Private equity firm CVC Capital Partners is in talks to acquire a 25 percent stake in Israeli ad tech startup ironSource Ltd. for $450 million, two people familiar with the matter have told financial website Calcalist.
ironSource, founded in 2010 and based in Tel Aviv, provides app developers with a platform to acquire users and display ads within mobile phone games. The Israeli startup has raised $105 million from investors to date, according to Start-Up Nation Central’s database.
The deal is expected to be signed in the coming 24 hours, Calcalist said, and values the firm at $1.55 billion, the sources said.
After the deal, if completed, CVC will become the largest shareholder in the startup, but its founders will maintain a controlling stake of some 45% to 50% together.
The firm is expected to post revenues of around $1 billion in 2019, with net profit coming in at $120 million to $130 million, the people familiar said. A spokesman for ironSource did not immediately comment on the report.
The firm has 13 additional offices including in San Francisco, New York and London, and 850 employees, most of them in Israel, Calcalist said.