Silver Lake and PIF Hold Recent Talks to Acquire Unity Software

✦ Meridian Analysis

Gaming software provider Unity Software is in the midst of confidential takeover talks with a consortium that includes private‑equity firm Silver Lake Partners and Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF). The consortium would seek to take Unity private, a classic leveraged‑buyout structure, by purchasing the publicly listed equity and assuming existing debt. Silver Lake, which already owns roughly 8 % of Unity and invested up to $400 million in 2017, is part of the consortium. Unity has retained an investment bank to evaluate its options, and the parties have reportedly floated a pre‑earnings valuation of about $25 billion, compared with the company’s post‑results market capitalisation of roughly $21.5 billion. A successful take‑private would rank among the biggest software LBOs of recent years and would extend the pattern set by Silver Lake and PIF’s participation in the $55 billion EA buyout closed in August. Key unanswered items include the final purchase price, the leverage ratio and the composition of the financing package, as well as the identity of the advisers and the timetable for regulatory clearance. Confirmation of whether Unity’s board will entertain a definitive offer, and any conditions tied to the consortium’s capital structure, will be critical for gauging the deal’s feasibility.

The Meridian Weekly