Unity Technologies, the software company that’s highly involved in augmented reality (AR) and virtual reality (VR) has announced today that its accepted a $400 million USD investment from private equity firm Silver Lake.
The reveal came from Unity’s CEO John Riccitiello reports Bloomberg. The company doesn’t need the money as such, but it will allow early shareholders and employees to cash out if they wish said the CEO.
“A big chunk of it is secondary and that’s because it makes sense to let employees buy cars,” commented Riccitiello. “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.”
This new investment values the middleware company at $2.6 billion, but the deal’s not finalised yet until regulators approve it.
Unity is playing a major part in the VR and AR industry. Developers around the world use the software to create videogames and apps, with Unity holding a major share of the market. Which is why Silver Lake likely see the company as a good investment. It’s not as though the equity firm is having to be careful with a small amount of funds though, as last month it raised $15 billion for a technology fund.
“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,” Riccitiello said. “We’ve got a first wave that is going really really well and we have a second one that is dominant.”
Unity Technologies also dominates the AR space, Niantic Inc.’s Pokemon GO was built using it, and at the recent Vision Summit, Brandon Bray, Microsoft’s Principal Group Manager revealed that 91 percent of apps for HoloLens are built with Unity.
VRFocus will continue its coverage of Unity, reporting back with the latest developments.