Israeli mobile gaming company Playtika (Nasdaq: PLTK) has announced that it is acquiring Finnish mobile apps developer Reworks. Herzliya-based Playtika will pay $400 million in cash for 80% of the company and up to $200 million more for the remaining 20%, depending on Rework's 2022 economic performance.
Reworks Oy is the maker of hit design entertainment app Redecor, which in the 18 months since its launch, has grown to become the #2 Design Entertainment app based on in-app purchase revenue. Home Décor appeals to a similar demographic to that of Playtika’s existing 36 million monthly active users.
Playtika cofounder, CEO and chairman Robert Antokol said, "As the fragmented and historically offline market of Home Décor continues to expand onto digital channels, Reworks offers us a compelling opportunity to establish a leading presence in a category that clearly commands a lot of interest and will potentially serve as a foundation to enter further areas beyond traditional gaming. Redecor provides amazing entertainment to design enthusiasts and we intend to utilize our expertise in mobile gaming, live-ops and technology to take it to new heights. Reworks’ talented team will enable us to build new apps in-house to drive future organic growth across the broader digital entertainment and app ecosystems."
Reworks cofounder and CEO Ilkka Teppo said, "In Redecor, we set out to build a leading entertainment product for the design community and are thrilled to be able to accelerate its growth with a partner like Playtika. Our strong creative capabilities complement Playtika’s expertise in technology and data, a match we think will be very beneficial to our future growth."
Playtika's share price fell 0.57% on the Nasdaq yesterday to $26.39, giving a market cap of $10.81 billion.
Published by Globes, Israel business news - en.globes.co.il - on September 1, 2021
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