Mobile publisher Playtika has acquired Reworks, the Finnish developer behind home design game Redecor, for up to $600 million.
The deal will see Playtika acquire 80 percent of Reworks for $400 million in cash, before grabbing the remaining 20 percent for a fee that could rise to $200 million based on certain EBITDA performance targets.
Playtika intends to leverage its Boost technology platform and expertise in live-ops to expand into the burgeoning ‘design entertainment’ genre, and said the Reworks deal its a huge step towards achieving that goal.
“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,” said Playtika co-founder, CEO and chairman Robert Antokol in a press release.
“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.”
Since launching 18 months ago, Redecor has grown to become the second most-lucrative design entertainment app based on in-app purchase revenue. Playtika expects the acquisition to add roughly $30 million in 2021 revenue to its books, and noted the deal marks its eighth acquisition of a mobile game or property since being founded in 2010.
Looking ahead, Playtika will continue to pursue other mergers and acquisitions, and has approximately $1.4 billion in available liquidity to fund those purchases.