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.
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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
Copyright of Globes Publisher Itonut (1983) Ltd. 2021