Connect with us

Hi, what are you looking for?

Jewish Business News

VC, Investments

Israeli IronSource raises $85-100 million from Ten investors

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.

Israel-based IronSource closed an investment round of $80 million to $100 million from a consortium of 10 American, European and Asian investors,  six months after IronSource called off a merger with Babylon, after the latter lost a key contract with Yahoo and Google.  TheMarker reports.

The fundraising round values the online software distributor at $800 million. The biggest investor is The Disruptive Fund, led by serial entrepreneur Tal Barnoach.

The company plans to expand its offering and revenue streams through acquisitions before the planned IPO. IronSource has already hired Morgan Stanley and JPMorgan Chase its advisers for the IPO, in second quarter of 2015, which is estimated to have a valuation $1.5 billion.

Carmel Ventures, which held a 15% stake in IronSource, did not to join the current round.

Download Valley — the cluster of companies whose business model is to entice users to download free software — had been going through a rough patch in the last several months. Last week, two of these companies, Perion (Nasdaq:PERI: TASE:PERI) and Babylon (TASE:BBYL) reported bad news. Baylon said it would five back shareholders some 125 million shekels ($36 million) as a dividend because it couldn’t see how to justifiably spend the money on acquisitions or research and development.

Perion, meanwhile, slashed its outlook for the rest of 2014 and said it is shifting its focus away from desktop computers to the mobile market.

IronSource, whose CEO Tomer Bar-Zeev is a major shareholder, has been profitable and cash-flow positive, even distributing dividends. Last year, it had revenues of some $200 million, yielding an operating margin of 25%. It employs about 200 people at its offices on Tel Aviv’s Lillienblum Street.

Founded in 2009 by two brothers Tomer Bar-Zeev and Eyal and Roi Milrad,  IronSource currently employs 370.

Its main product is installation software used by many of the world’s most popular downloading websites. Its InstallCore platform, handles over 100 million software installs per month, shortening download times and providing users with suggestions for software their computers may need.

It has enabled IronSource to offer distribution and installation services to other software developers.

IronSource declined to respond to the report.

 

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Life-Style Health

Medint’s medical researchers provide data-driven insights to help patients make decisions; It is affordable- hundreds rather than thousands of dollars

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Leadership

Jews are disproportionately represented on the roster of the richest business people, with 10 Jews among the top 50 (20%), and 38 (19%) Jews...