Chinese Fund Primavera in Talks to Acquire Ironsource for $1B
Israeli company IronSource has received an offer from Primavera, the Chinese fund, which manages $2.9 billion in assets. As reported by Jewish Business News, Primavera made an offer for $1 Billion and the negotiations have been ongoing for two months. The fund expected to bring one or two partners into the deal, if it should actualize.
IronSource, founded in 2009, is a global digital content company backed by Carmel Ventures. It offers monetization and distribution solutions for app developers, software developers, mobile carriers, and device manufacturers. In 2013 it was listed in the Wall Street Journal "Billion Dollar Startup Club” as one of the top ‘20 hottest startups’. In 2015, it merged with Israel’s SuperSonic creating Israel’s largest Internet company in terms of revenue and value. Ironsource has over 700 employees, half of which are dedicated to Research and Development. The company’s revenues are generated from the sale of advertising on the installation software.
This is not the first time Ironsource has received offers from Chinese funds. Last year, CDH, which manages assets worth $19 billion, negotiated but a deal was not reached. Some of Iron- Source’s shareholders are interested in cashing out. However, an IPO on Nasdaq is not being considered because American investors are expected to balk at the areas in which the company is engaged. Also US technology companies would not be good candidates. Chinese investors present as the most likely buyers.
Primavera has also recently been negotiating to acquire Netafim, the Israeli irrigation company. Last week, however, the company was sold to Mexicam, Mexican counterparts for $1.5 billion.
When asked to comment on the story, CEO and majority shareholder Tomer Bar-Zeev told Israeli paper Calcalist, “How many times can you write that AeroSource is negotiating to be sold to Chinese companies? There are always calls from Chinese bodies to buy the company, and Primavera has also turned to us, but there are currently no negotiations for sale with any one.”