Playtika enters Design Entertainment market through acquisition of Reworks, maker of Redecor
August 31, 2021 16:01 ET
Playtika Holding Corp.
HERZLIYA, Israel, Aug. 31, 2021 (GLOBE NEWSWIRE) -- Playtika Holding Corp. (NASDAQ: PLTK) announced today its acquisition of Reworks Oy, maker of hit Design Entertainment app, Redecor. In 18 months since its launch, Redecor has grown to become the #2 Design Entertainment app based on in-app purchase revenue. Playtika, a leader in mobile gaming, live-ops and technology, will leverage its expertise to further grow Redecor into a leading destination for Design enthusiasts for years to come.
In-app purchase revenue in the Design Entertainment category has grown at a 33% compounded annual growth rate since 2019,[i] based on App Annie. Home Décor comprises 12% of all U.S. e-commerce sales, is one of the most popular categories on Pinterest, and returns more than 100 million Home Décor-related Instagram posts.[ii] Home Décor appeals to a similar demographic to that of Playtika’s existing 36 million monthly active users.
“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,” said Playtika Co-Founder, CEO and Chairman Robert Antokol. “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. 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 Ilkka Teppo, Reworks’ Co-Founder and CEO. “Our strong creative capabilities complement Playtika’s expertise in technology and data, a match we think will be very beneficial to our future growth.”
Reworks, based in Helsinki, will further bolster Playtika’s existing presence in the city, a leading mobile app and game hub. “Adding such a creative team with a history of making successful mobile apps and entertainment products will help us continue to attract the strongest talent in the Nordic region who want to work on amazing mobile experiences,” said Antokol.
Playtika has acquired 80% of Reworks for $400 million in cash. Playtika will purchase the remaining 20% of Reworks for up to $200 million, based on 2022 Company EBITDA (as defined in the definitive acquisition agreement). In the event the agreed upon 2022 Company EBITDA target is not exceeded, the outstanding 20% will transfer to Playtika for $1. This acquisition is expected to contribute approximately $30 million in revenue to Playtika’s 2021 revenue. This transaction marks Playtika’s 8th acquisition of a mobile game or IP since its founding in 2010. Following this transaction, Playtika remains well positioned to continue pursuing its M&A strategy, with approximately $1.4 billion in available liquidity for future deals.