Unity preparing for 2020 IPO – Report

Unity Technologies Inc., a developer of graphics software used to design video games, is working with financial advisers to prepare for a U.S. listing that could take place later this year, according to people with knowledge of the matter.

The San Francisco-based company is considering an initial public offering that could happen as early as the fall, the people said, asking not to be identified because the information is private.

The company has tapped Goldman Sachs Group Inc. to lead the offering, the people added. Unity’s plans aren’t final and the timing could still change.

Unity’s revenue growth rate is above 30% and gross margins are over 80%, its Chief Executive Officer John Riccitiello said last month. PitchBook estimates the company’s last private market value to be about $6.3 billion.

Software companies has been a sweet spot within the technology sector. The U.S. companies that went public in the past year in the space jumped 78% since their debut on a weighted-average basis, while IPO broadly rose 28%, according to data compiled by Bloomberg.

Representatives for Goldman Sachs and Unity Technologies declined to comment on any plans.

“We are laser-focused on the success of our customers and on the health and safety of our employees. We do not comment on future financing plans,” a Unity spokesperson said.

Unity Technologies, which counts Sequoia Capital and Silver Lake Partners, among backers, is a development platform for 2D, 3D, virtual and augmented reality games and experiences. It powers half of the available PC, console and mobile games, according to its website.

Unity also has a mobile ads business. Developers can choose to have ads show up in their games, giving them a way to make money beyond in-game content and charging for the games themselves.

Last year, a former Unity executive, Anne Evans, accused Riccitiello in a lawsuit of sexual harassment and threatening to derail her career. The allegations against Riccitiello are false, a spokesperson said.

The company last month named Scott Pitasky, a former executive at Amazon.com Inc and Microsoft Corp. as the chief people officer, it said in a statement.

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Unity preparing for 2020 IPO – Report