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CVC Funds has invested $400 million in mobile marketing firm IronSource to boost both organic and inorganic growth in the coming years.

CVC Funds will take a minority stake in IronSource in exchange for the money, which means that IronSource has a substantial valuation. The deal makes IronSource one of Israel’s first unicorns, with a valuation over $1 billion.

“As one of the world’s most respected private equity firms, CVC has a track record of successfully partnering with companies to drive global growth,” said Tomer Bar-Zeev, CEO of IronSource, in a statement. “As such they are the perfect partner for this next phase in our journey, as we continue to scale internationally, engage with A-class partners and invest heavily in building out our offering for game developers.”

Profitable from its early days, IronSource has grown rapidly since its founding in 2009 and is on track to finish 2019 with approximately $1 billion of revenue.

Through its various technologies, the company works with a unique combination of customers including software, app, and game developers; telecom operators; and mobile device original equipment manufacturers (OEMs). The company focuses on developing technologies for app monetization and distribution, with its core products targeting game developers.

The gaming industry is experiencing rapid growth and is on track to generate $180 billion in 2021, with mobile gaming experiencing a 27% CAGR. IronSource’s growth platform provides mobile game developers with the tools they need to grow and scale their game businesses.

“We’re witnessing the creation of a sector, gametech, which supports this growing ecosystem, with tailor-made tech solutions such as advertising, marketing, analytics, market intelligence, CRM and more,” said Bar-Zeev. “Our continued investment in this industry is part of a wider goal to be the go-to partner for any game developer looking to scale their game business.”

Another key growth driver for the company is Aura, IronSource’s solution for mobile carriers and device manufacturers. Aura provides a dynamic engagement and content distribution solution, empowering OEMs and telecoms operators to build ongoing relationships with their customers, ultimately turning those customers into engaged users.

The technology is integrated on more than 120 million mobile devices globally, through partnerships with the top telecoms operators in the U.S. and international mobile OEMs.

“By combining best-in-class technology with strategic acquisitions we’ve proven our ability to support the growth of our clients and create a unique experience for their users, and that’s something we plan to continue investing in moving forward,” said Bar-Zeev.

“We are delighted to be partnering with such an innovative and exciting technology business,” said Daniel Pindur, partner at CVC Capital Partners, in a statement. “The investment in ironSource is a unique opportunity to support a well-respected founder-led organization to accelerate its growth. We look forward to working with Tomer Bar Zeev and his team to take the company to the next level.”

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