Following the EA buyout, Saudi Arabian investors set their sights on Unity: a multi-billion dollar deal

Investment firm Silver Lake and Saudi Arabia’s sovereign wealth fund PIF are considering the potential acquisition of Unity, one of the largest video game development tools providers.

According to Reuters, talks with Unity Software have intensified in recent weeks. Silver Lake, which owns about an 8% stake in the company, and PIF have approached it with a buyout proposal. Following this, Unity hired an investment bank to evaluate potential options for next steps. A deal is not guaranteed yet, and its terms may change.

Previously, Silver Lake and PIF were involved in a major acquisition of Electronic Arts for $55 billion. The consortium also included Affinity Partners. The deal to take the publisher private was completed in August.

Unity is well known for its game engine and tools used by thousands of studios. Among them are the creators of Monopoly Go! and Pokémon Go. Both companies are owned by an investor group that includes PIF, Silver Lake, and Affinity Partners.

Interest in Unity intensified following the release of its quarterly report. The company’s revenue grew by 32% to $622.1 million, and adjusted earnings reached 44 cents per share. Driven by the growth of its AI-powered Vector advertising platform, Unity posted a quarterly GAAP profit for the first time since going public in 2020. The company’s market valuation reached approximately $21.5 billion.