Unity Reports Acquisition Talks With Silver Lake And PIF

Gaming software provider Unity is reportedly engaged in acquisition discussions with a consortium led by private equity firm Silver Lake and Saudi Arabia's Public Investment Fund (PIF). Both firms previously partnered to acquire Electronic Arts for $55 billion earlier this year. According to Reuters, the potential buyer group discussed valuing Unity at approximately $25 billion prior to its recent earnings report, which saw market capitalization rise to around $21.5 billion following a 32% revenue increase. Silver Lake currently holds an 8% stake in Unity and originally invested $400 million in May 2017 when the company was valued at just $2.6 billion. Sources indicated that while Unity has been consulting with investment banks to evaluate its options, no deal is certain as terms may still change. The two firms have not immediately responded to requests for comment.