Riyadh – Sharikat Mubasher: Unity Software, a US-based provider of video game development tools and real-time 3D software, entered talks with a consortium including private equity firm Silver Lake and Saudi Arabia’s Public Investment Fund (PIF) over a potential acquisition valued at around $25 billion, according to Reuters.

The discussions, which took place in recent weeks, come as consolidation continues across the global gaming industry. Silver Lake and PIF reportedly approached Unity before its latest earnings report, which raised its market capitalization to approximately $21.5 billion.

Unity is working with an investment bank to assess its options, although no agreement has been reached and the terms could still change, according to people familiar with the matter.

The potential acquisition would build on the investors’ previous gaming ventures, including their participation in the $55 billion acquisition of Electronic Arts, which was completed in August.

Silver Lake, which owns around 8% of Unity, has maintained a longstanding relationship with the company since investing up to $400 million in 2017.

Unity reported a 32% year-on-year increase in third-quarter revenue to $622.1 million, supported by growth in its advertising and game-development businesses.