Israel’s ironSource, which offers a multi-media platform, is buying out American mobile ad company Tapjoy for $400 million in cash. ironSource is just the latest Startup Nation firm to buy out a foreign business.
The acquisition, says ironSource, should strengthen the ironSource platform offering for mobile app and game developers through several areas of synergy. ironSource boasts that its customers will now be able to generate more revenue with greater access to diversified advertiser demand, including through the Tapjoy marketplace.
Usually, it is the Israeli firm that gets bought out by a foreign one. Like when just a few weeks ago Akamai Technologies acquired Tel Aviv-based cybersecurity startup Guardicore for $600 million. Or when, earlier this month, famed clothing company Gap Inc. acquired the New York and Tel Aviv based artificial intelligence AI start-up Context-Based 4 Casting CB4. The purchase price was not disclosed.
But now, it is the Israelis who are expanding globally. Like when one month ago, Kape Technologies PLC, an Israeli cybersecurity firm that offers privacy and security solutions, acquired ExpressVPN, a virtual private network provider, for $936 million. VPNs are directly related to the type of cybersecurity that Kape Technologies specializes in.
And also in September, Israeli owned and operated online digital gambling services provider and developer 888 Holdings acquired the British gambling company William Hill Bookmakers for £2.2 billion, or roughly $3 billion. This marked one of the biggest mergers and acquisitions in sports gambling history.
So the $400 million that ironSource is spending on Tapjoy seems paltry in comparison.
Tapjoy is a mobile advertising and app monetization company. Tapjoy’s platform helps advertisers to connect with app users through value exchange advertising that drives awareness, engagement, and the metrics that matter most to their overall growth. Founded in 2007 and headquartered in San Francisco, Tapjoy is a global organization with offices in Santa Barbara, Boston, London, Beijing, Tokyo, and Seoul.
When it comes to mobile games, Millennials are growing the gaming industry with 73% indicating that they played more in the last year!
— Tapjoy (@tapjoy) October 14, 2021
“Our platform-based approach to serving app developers means we’re able to plug in multiple strategic additions to our software platform to add more value for customers,” said Omer Kaplan, CRO and co-founder of ironSource. “This acquisition follows that strategy, ultimately allowing us to serve our customers in the most beneficial way possible, by growing our SDK footprint, improving our monetization capabilities, and positioning our platform as a deep and integral part of the in-app and in-game economy.”
“We are delighted to be joining ironSource, a leading business platform for app developers,” said Jeff Drobick, CEO of Tapjoy. “Tapjoy’s technology powers monetization, user acquisition, and customer research for some of the world’s largest brands and app developers, with our SDK integrated on approximately 66,000 apps reaching over 1.6 billion monthly active users. As the App Economy continues to grow, we believe that ironSource is the ideal partner to further leverage our products and expertise for continued growth.”