While the music trails away ever so-softly, once high-stepping US software darlings need to find dance partners while they can. On Tuesday, Unity said it would acquire ironSource for $4.4bn, paying a hefty 74 per cent premium. Despite the price, this deal hardly inspires.
Unity is paying in its shares which have fallen more than 80 per cent since their 2021 peak. These companies, not quite household names, came to the public markets during an extraordinary boom time for technology companies both promising massive growth.
With software which helps design video games and 3D graphics, Unity was one of the most hyped IPOs of 2020, rocketing a third higher on its first day of trading. IronSource began trading in 2021 after a reverse merger with a SPAC vehicle created by the buyout titan, Thoma Bravo.