Playtika Holding Corp. said late Tuesday it was acquiring design entertainment company Reworks Oy in a deal valued up to $600 million based on agreed upon financial targets.
Under the agreement, Israel-based Playtika
acquired 80% of Reworks for $400 million in cash, with the price of the remaining 20% based on Reworks’ 2022 earnings before interest, taxes, depreciation, and amortization results. If Reworks hits the targeted EBITDA, then the remaining 20% will be purchased for up to $200 million, or for $1 if the target is not exceeded.
Based in Helsinki, Reworks publishes mobile apps that combine lifestyle content and social gaming, such as Redecor, which blends interior home design with social gaming.
“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 Robert Antokol, Playtika co-founder and chief executive, in a statement.
Following the deal, the company said it “remains well positioned to continue pursuing its M&A strategy, with approximately $1.4 billion in available liquidity for future deals.”
During the week earlier this month that most videogame companies reported quarterly results, Playtika’s earnings report received the best reception from investors, with a 13% gain that week.