IronSource Valued At Almost $8 Billion Could Be Isreal's Biggest IPO
IronSource, is based in Tel Aviv, is Israel’s largest web company with 1,000 employees (800 in Israel). It offers technologies for monetization on mobile applications and has offices in 13 additional cities like San Francisco, New York, London, and in Asia.
IronSource is targeting a valuation of between $7 billion and $8 billion. (Last October the company was valued at $1.75 billion - PE firm CVC Capital Partners agreed to pay $450 million for a 25.7% stake in IronSource).
IronSource's annual profit is estimated at $170 million and over recent years it has handed out dividends totalling more than $200 million. It may hand out an additional $100 million in dividends before the offering.
The formal decision to embark on the IPO is set to be approved by Ironsource's board of directors in the very near future. The Israeli company plans to list on the Nasdaq and will most likely be underwritten by Goldman Sachs. (Viola Ventures, 10% owner, is leading the push to go public). Another option that is being considered is entering the market via a SPAC.
The company’s other owners include Tal Barnoach's Disruptive VC, 83North, Leumi Partners, Saban Ventures and Clal Industries. The entrepreneurs Gil Shoham and Arik Czerniak jointly hold a 1.6% stake in IronSource. The company employees own combined options reaching approximately 10%.
IronSource has also grown organically and via mergers and acquisitions that it made throughout the years. The biggest deal it was involved in was the merger with SuperSonic in a deal that valued the merged company at between $1.2 billion and 1.3$ billion. The 2015 deal saw SuperSonic receive $50 million in cash and IronSource shares valued at $150 million. SuperSonic's 250 employees joined IronSource and the merger created the largest private internet company in Israel in terms of employees, valuation and revenue.