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 Private Equity Wire. The discussions were described as preliminary, with no certainty that a transaction will proceed, according to Private Equity Wire.
Approach and process
The report said the consortium approached Unity in recent weeks, according to Private Equity Wire. The approach prompted Unity to engage an investment bank to evaluate its options, according to the same report.
Silver Lake’s existing stake and prior investment
Silver Lake already owns approximately 8% of Unity, according to Private Equity Wire. Silver Lake invested up to $400m in Unity in 2017, according to Private Equity Wire.
Prior gaming deals tied to Silver Lake and PIF
The potential acquisition was described as another major investment in the gaming sector for Silver Lake and PIF, according to Private Equity Wire. Silver Lake and PIF were part of the consortium behind the $55bn take-private of Electronic Arts completed in August, according to Private Equity Wire.
The investors reportedly also have interests in gaming companies Scopely and Niantic, both of which use Unity’s technology, according to Private Equity Wire.
Unity operating details cited in the report
Unity’s software powers thousands of video games and real-time 3D applications, according to Private Equity Wire. The company recently reported a 32% increase in quarterly revenue to $622.1m, according to Private Equity Wire. Unity also reported its first GAAP quarterly profit since listing in 2020, according to Private Equity Wire.
A successful acquisition would rank among the largest software leveraged buyouts in recent years, according to Private Equity Wire.
