By Robert Barba
The mobile game company Playtika Holding Corp. acquired an 80% stake in designer entertainment app maker Reworks Oy for $ 400 million with a plan to acquire the remainder of the company.
Playtika will pay up to $ 200 million for the remaining 20% based on the company’s profits in 2022 before interest, taxes, depreciation and amortization. If the agreed EBITDA target is not exceeded, Playtika will take the stake for $ 1, he said when announcing the deal.
Playtika, which offers casino-style games, said Reworks Oy’s Design Entertainment app caters to a similar demographic to its existing 36 million monthly active users.
“As the fragmented and historically offline interior design market continues to expand into digital channels, Reworks offers us a compelling opportunity to establish a leading presence in a category that is clearly generating a lot of interest and which will potentially serve as a basis for entering other areas beyond traditional gaming, ”Playtika chief executive and chairman Robert Antokol said in prepared remarks.
Playtika said the deal will contribute around $ 30 million in revenue this year. The company said earlier this month that it expects annual revenue of $ 2.60 billion.
Playtika, which went public in January, also said on Tuesday it had $ 1.4 billion in cash available for additional transactions.
Write to Robert Barba at [email protected]