PLTK - Playtika acquires Reworks in $400 million-plus purchase

Playtika (NASDAQ:PLTK) has acquired Helsinki-based Reworks, giving it an entry into the growing "Design Entertainment" app market. Reworks is the developer of Redecor, which has grown to the sector's No. 2 app in terms of in-app purchase revenue. That sort of revenue in Design Entertainment has grown at a 33% compound annual rate since 2019, according to App Annie. Playtika acquired 80% of Reworks for $400 million in cash, and will acquire the remaining 20% for up to $200 million though that figure is dependent on 2022 EBITDA; if the EBITDA target is not reached, then Playtika will acquire the remaining 20% for just $1 more. And Playtika is expecting a contribution of $30 million to 2021 revenues from the acquisition.

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Playtika acquires Reworks in $400 million-plus purchase