Marketing platform AppLovin proposes merger with Unity at valuation of $20 billion
Marketing software platform AppLovin has tabled a non-binding proposal to merge with Unity in an all-stock deal that would value the engine maker at $20 billion.
AppLovin claims that in combining with Unity it will be able to "create an unprecedented full stack solution for developers to create, monetize, measure and grow games."
The proposed transaction would see each outstanding share of Unity common stock exchanged for 1.152 shares of AppLovin Class A voting common stock and 0.314 shares of AppLovin Class C non-voting common stock.
"Under these terms, current Unity shareholders would receive approximately 55.0 percent of the outstanding shares of the combined company, with the Class A shares representing approximately 49.0 percent of the outstanding voting rights of the combined company," reads a press release.
"Together the combined business would be poised to offer the most comprehensive and fully integrated creation and growth platform for app developers."
AppLovin believes the deal will generate "substantial revenue growth" that simply wouldn't be achievable should each company continue to operate on a standalone basis. The marketing company, which is headquarter in Palo Alto, California, said it's better positioned than any other business to develop an end-to-end platform with Unity.
"Unity’s audience reach through games built on Create Solutions paired with AppLovin’s powerful AXON machine learning engine will create material efficiency gains for the combined growth platform, leading to revenue gains, but even more importantly facilitating materially more value to app developers," continued the company.
"With AppLovin and Unity working in concert, developers would be able to seamlessly take their app from concept
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