IronSource closes $100 million in new investment as it heads towards an IPO
IronSourceIronSource CEO Tomer Bar-Zeev
IronSource, the Israeli software distribution platform, just closed a $100 million-plus round of investment funding which values the company at more than $1 billion.IronSource founder/CEO Tomer Bar-Zeev told Business Insider the injection accelerates the company's path toward an initial public offering. JP Morgan and Morgan Stanley were the underwriters of the round.
IronSource is working on one more acquisition before that happens but Bar-Zeev thinks the company will go public at "the beginning of next year."
IronSource, whose software is used by companies who want to distribute and advertise app downloads, doesn't need the money, Bar-Zeev says. "We could have decided not to do this round because the company is profitable." But it lets IronSource expedite its growth and do the acquisitions that keep it within striking distance of the mobile app download ad networks run by Facebook, Google and Twitter.
In the meantime, the money will be used to solidify IronSource's position as a top choice for device-agnostic apps. "In one or two years from now, tops, there will not be a scenario where you use one set of apps on desktop and one set on mobile, that difference simply will not exist," Bar-Zeev says.
IronSource's revenues were $260 million in 2013. We don't know how much they are currently but a source told Business Insider in December that the company has a gross revenue run-rate approaching $350 million annually. (Bar-Zeev believes IronSource is probably a bit bigger than Twitter's MoPub network.)
The company has about 550 employees.
Here is the press release:
Access Industries Completes $25 Million Investment in ironSource. Initial Round Expanded to Officially Close at over $100 Million.
New Funding is a Testament to Continued Faith in the ironSource Roadmap
Tel Aviv -February 25th 2015, ironSource, the world's leading digital delivery company, today announced an additional $20 million investment from a group of investors, led by Access Industries. The latest funding is in addition to the approximately $85 million raised by ironSource in September 2014, and officially closes the funding round at over $100 million.
The additional funding is further confirmation of investors' belief in the future of ironSource and enables the company to increase its market share, expand its product offering, and continue its plans for global expansion and strategic acquisitions.
Access Industries, led by its Chairman, American industrialist Len Blavatnik, provided most of the new funding and increased its total investment in ironSource to $25 million. Access Industries has long-term holdings worldwide and has invested in many successful global tech companies. Access has recently increased its investments in Israeli technologies through the establishment of ClalTech, which serves as Access' Israeli tech investments arm.
Connecting people with the apps they want and need, ironSource offers a cross platform ecosystem for apps providing a comprehensive solution to handle the distribution, delivery and monetization of web, desktop and mobile applications. ironSource has developed rapidly and currently handles over 7 million installs per day and has over 70,000 applications utilizing the mobileCore SDK. Established in 2010, the company has grown rapidly, with approximately 500 employees based in Tel Aviv, Beijing, San Francisco and New York.
"This new funding will allow us to build on our market dominance to truly disrupt the industry, and revolutionize the way we all download and use applications," said Tomer Bar-Zeev, ironSource CEO and Co-Founder. "We are very proud to have Access Industries as a strategic and growing partner in ironSource, and are already seeing tremendous value from working closely together."
"The market need for a comprehensive distribution solution like ironSource is only set to grow, and we were keen to expand our stake in such a company with a huge potential for growth," said Daniel Shinar, who led the deal for Access. "ironSource has an exceptionally strong team, and their trajectory thus far has been stellar. We're excited to be a part of the next stage of their continued growth."
Over the past year, ironSource has expanded its global presence, opening offices in North America and China. The company's Beijing office works with Chinese internet giants to connect them with target users across the world. 2015 will see the continued growth of ironSource's global footprint, with planned offices in Europe and South America.
Following the investment, Daniel Shinar, will join ironSource as a Board Observer. Shinar is ClalTech's CEO and serves on Access' behalf as a board member for global companies including Rocket Internet, one of the world's largest Internet companies (FRA: RKET), and other leading global tech companies.
About ironSource
World leading digital distribution company ironSource offers a comprehensive platform - including digital discovery, delivery, distribution and monetization - to help developers best connect with users across devices. Founded in 2010 with headquarters in Tel Aviv, ironSource has offices in San Francisco, New York and Beijing. More at http://www.ironsrc.com
About Access Industries
Access Industries is a privately held, U.S.-based group with long-term holdings worldwide across different sectors. Access was founded in 1986 by its Chairman, Len Blavatnik, an American industrialist. Among Access' portfolio companies are category leaders like: Warner Music, Rocket Internet, Zalando, Tory Burch, Deezer, Perform, Tango, Gettaxi, Westwing, Crowdsurge, Sentient Technologies and many others. More at www.accessindustries.com
About ClalTech
ClalTech invests in Israeli & Israeli related technology companies, with a focus on Internet, e-commerce and financial technologies. ClalTech is supported by a vast network of its parent companies: Access Industries and Clal Industries. More at http://www.claltech.com