Exclusive-Silver Lake, PIF have held recent talks to buy gaming software provider Unity, sources say

Gaming software company Unity Software is reportedly in talks to be acquired by a group of investors, including private equity firm Silver Lake Partners and Saudi Arabia’s sovereign wealth fund PIF. The deal, if completed, would mark a significant gaming acquisition for both Silver Lake and PIF, who were previously involved in the $55 billion takeover of Electronic Arts.

Sources indicate the investors approached Unity in recent weeks, proposing a valuation of around $25 billion, which was higher than Unity's market capitalization of $21.5 billion following its latest earnings report. Unity's shares rose approximately 4% in extended trading after the news broke.

Unity is currently evaluating its options with an investment bank after receiving the acquisition approach. However, no deal is guaranteed, and the terms could still change.

The acquisition of Unity, a leading provider of software tools for creating video games and real-time 3D applications, would represent one of the largest leveraged buyouts in the software sector in recent years. Unity's game engine and developer tools are already utilized by various gaming companies, including those owned by Silver Lake, PIF, and Affinity Partners.