Israel-based mobile game development company Playtika Holding Corp. announced on Tuesday that it acquired home design app maker Reworks as part of its efforts to enter the Design Entertainment market.
Playtika acquired 80% of Reworks for $400 million in cash and will acquire the remaining 20% based on the company’s 2022 EBITDA targets. If the targets are not met, the remaining ownership will transfer to Playtika for $1.
Founded in 2018, Helsinki-based Reworks Oy is widely famous for its hit Design Entertainment title Redecor which was launched 18 months ago and has become the No.2 game in the category in terms of in-app purchase revenue.
“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,’’ said Robert Antokol, Playtika’s Co-Founder, CEO and Chairman. ‘’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. We are excited to welcome Reworks to the Playtika family.”
“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,” said Reworks Co-Founder and CEO Ilkka Teppo. “Our strong creative capabilities complement Playtika’s expertise in technology and data, a match we think will be very beneficial to our future growth.”
Founded in 2010 and headquartered in Herzliya, Israel, Playtika currently has more than 36 million monthly active users. Its social casino titles generated more than $2.3 billion in revenue in 2020.
The acquisition of Reworks is Playtika’s first acquisition as a public company and is expected to contribute around $30 million to its sales this year.