Key Takeaways
- • Silver Lake Partners and Saudi Arabia's Public Investment Fund (PIF) have held preliminary discussions about acquiring Unity Software in a potential $25bn take-private transaction, according to Reuters citing people familiar with the matter.
- • Unity engaged an investment bank to evaluate its options after the consortium approached the company in recent weeks; no certainty exists that a deal will proceed.
- • Silver Lake already owns approximately 8% of Unity and invested up to $400m in the business in 2017.
- • The potential deal would extend Silver Lake and PIF's gaming investments, following their participation in the $55bn take-private of Electronic Arts completed in August.
- • Unity reported a 32% increase in quarterly revenue to $622.1m and its first GAAP quarterly profit since its 2020 listing.
Summary
Silver Lake Partners and Saudi Arabia's Public Investment Fund (PIF) have held discussions about acquiring gaming software developer Unity Software in a potential $25bn take-private transaction, according to a report by Reuters citing people familiar with the matter. The discussions remain preliminary, and there is no certainty that a transaction will proceed.
The consortium reportedly approached Unity in recent weeks, prompting the company to engage an investment bank to evaluate its strategic options. Silver Lake already holds an approximately 8% stake in Unity, having invested up to $400m in the business in 2017.
The potential acquisition would mark another major investment in the gaming sector for Silver Lake and PIF, which were part of the consortium behind the $55bn take-private of Electronic Arts completed in August. According to the report, the investors also hold interests in gaming companies Scopely and Niantic, both of which use Unity's technology.
Unity, whose software powers thousands of video games and real-time 3D applications, recently reported a 32% increase in quarterly revenue to $622.1m, alongside its first GAAP quarterly profit since listing in 2020. A successful acquisition would rank among the largest software leveraged buyouts in recent years.
The consortium reportedly approached Unity in recent weeks, prompting the company to engage an investment bank to evaluate its strategic options. Silver Lake already holds an approximately 8% stake in Unity, having invested up to $400m in the business in 2017.
The potential acquisition would mark another major investment in the gaming sector for Silver Lake and PIF, which were part of the consortium behind the $55bn take-private of Electronic Arts completed in August. According to the report, the investors also hold interests in gaming companies Scopely and Niantic, both of which use Unity's technology.
Unity, whose software powers thousands of video games and real-time 3D applications, recently reported a 32% increase in quarterly revenue to $622.1m, alongside its first GAAP quarterly profit since listing in 2020. A successful acquisition would rank among the largest software leveraged buyouts in recent years.
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