Silver Lake and PIF in talks over $25bn Unity buyout

Investment firms Silver Lake Partners and Saudi Arabia's Public Investment Fund (PIF) are reportedly in talks to acquire gaming software company Unity Software in a potential $25 billion buyout, sources indicate. According to Reuters, the two entities approached Unity in recent weeks, leading the company to consult an investment bank to assess its strategic options.

Silver Lake, which holds roughly 8% of Unity's shares, previously injected up to $400 million into the business back in 2017. It is important to note that the discussions are still at an early stage, and there is no guarantee that the deal will materialize. If successful, this acquisition would signify significant investment in the gaming industry for both Silver Lake and PIF, who were also involved in the $55 billion take-private deal of Electronic Arts in August.

Additionally, the investors reportedly hold stakes in gaming companies Scopely and Niantic, both of which utilize Unity's technology. Unity's software powers numerous video games and real-time 3D applications. Recently, the company reported a 32% year-over-year increase in quarterly revenue, reaching $622.1 million, and it achieved its first GAAP quarterly profit since listing on the stock market in 2020. A successful acquisition would be among the largest software leveraged buyouts in recent years.