Unity Software Is Getting ironSource for an Absolute Steal
3D content creator platform Unity Software (NYSE: U) made a splash when it announced it was acquiring app monetization company ironSource (NYSE: IS) in an all-stock deal. Unity is getting its hands on a top peer in the application management space, one that could help it with issues in its own app monetization offering. And though the price offered is a big premium over where ironSource was trading before the deal was announced, the final consideration looks like a fantastic long-term value. I believe Unity is a fantastic buy right now.
Unity's offer to ironSource was worth $4.4 billion at the time of the deal's announcement. However, because the buyout dictates each share of ironSource be exchanged for 0.1089 shares of Unity, the actual value of this acquisition will vary from minute to minute based on Unity stock's price.
Basically, because Unity stock tanked after the merger was revealed, the deal value immediately dropped from $4.4 billion to $4.1 billion -- based on the 1.15 billion shares outstanding ironSource anticipated having in the second quarter and a Unity stock price of $33. (To calculate the deal value, multiply Unity's current share price by 0.1089, then multiply again by 1.15 billion.)
Source Fool.com
