Wednesday, September 27

AppLovin offers to buy Unity Software in $17.5 bln deal

Article content

Digital marketing company AppLovin Corp on Tuesday made an offer to buy gaming firm Unity Software Inc in a $17.54 billion all-stock deal.

The enterprise value of the deal is $20 billion. AppLovin will offer $58.85 for each Unity share, the companies said, which represents a premium of 18% to Unity’s Monday closing price.

Under the proposed deal, Unity will own 55% of the combined company’s outstanding shares, representing about 49% of the voting rights.

Shares of Unity rose 7%, while those of AppLovin fell 14% before the opening bell. (Reporting by Eva Mathews in Bengaluru; Editing by Saumyadeb Chakrabarty)