San Francisco-based video game software developer Unity Technologies is preparing for an IPO, as reported by the financial outlets. The company has not yet decided on a date. The public offering of shares is expected to take place in the fall. The company chose Goldman Sachs as its chief financial advisor in preparing for the listing.
Unity Technologies is a platform for developing games in 2D and 3D graphics in real-time, virtual, and augmented reality. Unity Technologies also has a mobile advertising business. Unity customers – video game developers – can display ads in their games and earn more than just selling the product.
The company was founded in 2004 in Copenhagen, and in 2006 became a division of Unity Technologies ApS. In 2009 it was renamed Unity Technologies SF. Many venture companies such as Silver Lake Partners, WestSummit Capital, iGlobe Partners, and Sequoia Capital have invested in the company.
As we prepare for Unity IPO, the gaming business brought the company a 2019 revenue of $ 500 million. Unity’s revenue growth exceeds 30%, and gross profit – is more than 80%, said CEO John Richitello. According to PitchBook estimates, the company is worth about $ 6.3 billion.
Why Unity Technologies is Interesting
The first game of Danish programmers GooBall did not bring success. Therefore, the developers decided to create an engine for computer games that will be sold at an affordable price and will be widely used for any game. This engine became the hallmark of the future Unity Technologies.
In 2008, with the growing popularity of the iPhone, Unity developed an engine that supports the iOS platform. Unity currently supports 24 platforms, including Android, Linux Windows, Oculus Rift, PlayStation, and more. In 2010, the company launched the Unity Assets Store, a marketplace where Unity users can buy graphics, scripts, or audio.
The company is actively expanding. Over the past few years, Unity Technologies has acquired Helsinki-based mobile service provider Applifier, and Shanghai-based e-commerce developer SilkCloud. Two more acquisitions – Playnomics developer data analytics platform and Tsugi integration service – have become divisions of Unity Analytics Unity Cloud Build and Unity Analytics.
It’s software used in many different fields and solutions, for example, casino and betting games as well, such as FIFA betting games.
Unity Technologies by the numbers
Software companies have always attracted investors. Similar American companies, which went public last year, have surged 78% since they debuted on the stock exchange, Bloomberg writes. And the IPO market in 2019 grew by 28%.
The company’s website lists its achievements over the past 12 months, which will tremendously help Unity Technologies IPO.
- 100 million gamers in 2019 communicated on their platforms using the voice and text service of Unity.
- Unity-developed apps are downloaded 3 billion times a month.
- 54% of the 1,000 best mobile games worldwide are supported by Unity.
- 50% of PC, console, and mobile games are created with Unity.
- Unity programmers work in 190 countries.