Private equity firm Silver Lake has agreed a $400 million investment in Unity Technolgies, according to Bloomberg Technology.
Unity is an important player in the global games market, creating development tools that underpin a large amount of the video games on the market. The Unity game engine is the most popular third-party development software amongst game creators.
With regards to VR, around 90% of Samsung VR games and 53% of Occulus Rift launch titles were made using Unity software.
The huge investment in the San-Francisco-based company means that it is now valued at $2.6 billion. The deal is still waiting for regulatory approval.
Betting on growth
Unity was founded in 2004 and has since gone on to provide the software that underpins popular titles such as Pokemon Go.
The company is attractive to investors for a number of reasons. Firstly, its reach is huge, with games and apps using its software reaching 2.4 billion devices around the world.
Secondly, because the company does not make its own games, its success is related to the gaming industry as a whole rather than any individual title or series.
It is the continued growth of the gaming industry, and the predicted upward trajectory of VR and AR that has attracted Silver Lake.
Talking about the investment to Bloomberg, Unity Technologies chief executive John Riccitiello said:
“In terms of primary capital we don’t ultimately need all that primary capital—the capital is safety when we’re investing to grow as fast as we are.
“The second act that I think attracts a lot of investors and investor interest is the fact that we have about 70 percent of AR and VR content built on Unity. We’ve got a first wave that is going really, really well and we have a second one that is dominant.”