Mobile technology and marketing company AppLovin made an offer on Tuesday to acquire Unity Software, which makes software used to build popular mobile games, in an all-stock transaction valued at $20 billion.
AppLovin offered to pay $58.85 per share for Unity’s stock, according to a release. Under the proposed deal, Unity would own about 55% of the outstanding shares of the combined company, representing approximately 49% of the combined company’s voting rights.
While Unity is best known for being the software behind big-ticket mobile titles like Pokemon Go, Call of Duty: Mobile and Monument Valley, the company says its framework powers over 70% of the top mobile games and that more than 50% of new mobile games are created using the Unity framework.
AppLovin CEO Adam Foroughi said in a statement that he believed the acquisition could lead to significant growth for the companies and benefit game developers.
“We believe that together, AppLovin and Unity create a market leading business that has tremendous growth potential,” he said. “With the scale that comes from unifying our leading solutions and innovation that would be achieved with the combination of our teams, we expect that game developers would be the biggest beneficiaries as they continue to lead the mobile gaming sector to its next chapter of growth.”
Unity didn’t immediately respond to a request for comment.