Trade The News story
AppLovin submits non-binding proposal to acquire Unity at $58.85/shr in all-stock $20B deal
- *All-stock merger consideration payable in a mix of AppLovin Class A and Class C common stock would value Unity at $58.85 per share and $20 billion enterprise value, representing a 48% premium to the Unity share price as of 7/12/2022 and 18% to yesterday’s closing price (based on the closing price of AppLovin’s Class A common stock on 8/8/2022)
- Comprehensive full-stack set of integrated industry-leading solutions including real-time 3-D creation tools, analytics, user acquisition, monetization, attribution and programmatic ad exchange
- Scaled operations and cash flow, targeting combined run-rate revenue of over $7 billion and run-rate Adjusted EBITDA of over $3 billion by the end of 2024E
- Estimated synergies of over $700 million Adjusted EBITDA achieved in 2025E, with a minimum of $500 million in 2024E, based on accelerated revenue opportunities, operational efficiencies and scale benefits
- All-stock merger consideration payable in a mix of AppLovin Class A and Class C common stock would value Unity at $58.85 per share and $20 billion enterprise value, representing a 48% premium to the Unity share price as of 7/12/2022 and 18% to yesterday’s closing price (based on the closing price of AppLovin’s Class A common stock on 8/8/2022)
- AppLovin confirms 2022E guidance for Adjusted EBITDA midpoint of $1.2 billion and Software Platform revenue of $1.14 to $1.29 billion and is lowering the Apps revenue range to $1.70 to $1.85 billion
Delivers significant value to shareholders of both companies
- Scale: Approximately $35 billion combined market cap enterprise which offers greater reach and market presence with more than $7 billion in estimated run-rate revenue and over $3 billion run-rate Adjusted EBITDA by the end of 2024E
- Synergy value creation: AppLovin expects to achieve over $700 million in Adjusted EBITDA synergies in 2025E, with a minimum of $500 million in 2024E
- Capacity for strategic investments: Given cash flow profile, the combined entity would be expected to continue to have the ability to reinvest for growth and take advantage of strategic opportunities as they arise
- Diverse and liquid shareholder base: The proposed transaction will meaningfully increase the float and diversification of AppLovin’s and Unity’s shareholder base
Shareholder value creation: Given the combined strategic position and industry leadership, leading to strong top-line growth and cash flow, the proposed combined entity would yield attractive long-term shareholder returns
- Comprehensive full-stack set of integrated industry-leading solutions including real-time 3-D creation tools, analytics, user acquisition, monetization, attribution and programmatic ad exchange
- Scaled operations and cash flow, targeting combined run-rate revenue of over $7 billion and run-rate Adjusted EBITDA of over $3 billion by the end of 2024E
- Estimated synergies of over $700 million Adjusted EBITDA achieved in 2025E, with a minimum of $500 million in 2024E, based on accelerated revenue opportunities, operational efficiencies and scale benefits
- All-stock merger consideration payable in a mix of AppLovin Class A and Class C common stock would value Unity at $58.85 per share and $20 billion enterprise value, representing a 48% premium to the Unity share price as of 7/12/2022 and 18% to yesterday’s closing price (based on the closing price of AppLovin’s Class A common stock on 8/8/2022)
- AppLovin confirms 2022E guidance for Adjusted EBITDA midpoint of $1.2 billion and Software Platform revenue of $1.14 to $1.29 billion and is lowering the Apps revenue range to $1.70 to $1.85 billion
Delivers significant value to shareholders of both companies
- Scale: Approximately $35 billion combined market cap enterprise which offers greater reach and market presence with more than $7 billion in estimated run-rate revenue and over $3 billion run-rate Adjusted EBITDA by the end of 2024E
- Synergy value creation: AppLovin expects to achieve over $700 million in Adjusted EBITDA synergies in 2025E, with a minimum of $500 million in 2024E
- Capacity for strategic investments: Given cash flow profile, the combined entity would be expected to continue to have the ability to reinvest for growth and take advantage of strategic opportunities as they arise
- Diverse and liquid shareholder base: The proposed transaction will meaningfully increase the float and diversification of AppLovin’s and Unity’s shareholder base
Shareholder value creation: Given the combined strategic position and industry leadership, leading to strong top-line growth and cash flow, the proposed combined entity would yield attractive long-term shareholder returns