Playtika enters Design Entertainment market through acquisition of Reworks, maker of Redecor
Playtika acquires Reworks Oy, maker of the successful Design Entertainment app, Redecor, for $400 million, with an additional potential $200 million based on future EBITDA. Redecor ranks as the #2 Design app by in-app purchase revenue, capitalizing on a booming Design category which has seen a 33% annual growth in revenue. The acquisition aligns with Playtika's strategy to expand into digital design spaces, accessing a large community of design enthusiasts similar to its existing user base of 36 million monthly active users, and is expected to contribute approximately $30 million to Playtika's 2021 revenue.
- Acquisition of Reworks Oy for $400 million enhances Playtika's market presence in the rapidly growing Design Entertainment sector.
- Redecor, as the #2 Design app, is expected to leverage Playtika's expertise in live-ops for further growth.
- Acquisition aligns with Playtika's existing demographic of 36 million monthly active users, fostering synergies in design and gaming.
- The final $200 million payment for Reworks is contingent on 2022 EBITDA performance, introducing financial uncertainty.
- If the target EBITDA is not met, the remaining 20% will transfer for only $1, signaling potential valuation risks.
- Redecor combines home design and gaming into the #2 Design Entertainment app.
- Playtika will leverage its proven expertise in live-ops and its Boost technology platform to expand into the large and growing Design category.
- Acquisition furthers Playtika’s growth strategy while providing it with a large and highly engaged community of Design enthusiasts, a demographic similar to Playtika’s existing user base.
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
“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
About Reworks Oy
Reworks is a Helsinki, Finland based mobile apps company that fuses lifestyle content and social gaming. Our apps spark creativity and unleash the creator within every one of us. We are best known for Redecor, a fusion between home design and mobile gaming. Redecor has attracted a dedicated audience that loves to design, find inspiration and connect with other interior design lovers.
About Playtika Holding Corp.
Playtika Holding Corp. is a leading mobile gaming company and monetization platform with over 36 million monthly active users across a portfolio of games. Founded in 2010, Playtika was among the first to offer free-to-play social games on social networks and, shortly after, on mobile platforms. Headquartered in Herzliya, Israel, and guided by a mission to entertain the world through infinite ways to play, Playtika has 19 offices worldwide including Tel-Aviv, London, Berlin, Vienna, Helsinki, Montreal, Chicago, Las Vegas, Santa Monica, Newport Beach, Sydney, Kiev, Bucharest, Minsk, Dnepr, and Vinnytsia.
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that are not historical facts are "forward looking statements." The use of words such as "plans", “will”, “may”, “intend”, “think”, “expected” and "believes," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: the expected timing of the transaction, Playtika's future financial performance, Playtika's business prospects and strategy, anticipated trends, and other similar matters. These forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others: uncertainties related to the costs and expected benefits of the transaction, the expected timing of the transaction, any litigation arising out of or relating to the transaction, the impact of the transaction on the business of Playtika, the possibility that Playtika will not recognize the anticipated benefits of the transaction, including the failure to develop new offerings and apps or enhancing existing offerings and apps to meet user and customer needs and respond to emerging technological trends and other circumstances beyond Playtika's control. Certain of these and other risks and uncertainties are discussed in Playtika's filings with the Securities and Exchange Commission (“SEC”), including its Form 10-K filed wth the SEC on February 26, 2021. Other unknown or unpredictable factors that could also adversely affect Playtika's business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, these forward-looking statements may not prove to be accurate. Accordingly, you should not place undue reliance on these forward-looking statements, which only reflect the views of Playtika management as of the date of this press release. Playtika does not undertake to update these forward-looking statements.
[i] IAP revenue based on data from AppAnnie. Compounded annual growth rate (CAGR) is calculated based on a review of 16 games in the pure-design entertainment category, which excludes design games with meta elements, from in-app purchases from January 1, 2019 through July 30, 2021.
[ii] “Furniture and Homeware E-Commerce Revenue in the US From 2017 to 2025,” Statista, July 5, 2021, https://www.statista.com/statistics/278896/us-furniture-and-home-furnishings-retail-e-commerce-sales-share/; “US Retail Ecommerce Sales, by Product Category, 2021,” eMarketer, February, 2021, https://www.emarketer.com/content/us-ecommerce-by-category-2021; Instagram search “#homedecor”, August 23, 2021
Contacts
| Investor Relations | Press Contact | |
| Playtika | Outcast | |
| David Niederman | Angela Allison | |
| davidni@playtika.com | playtika@thisisoutcast.com |
FAQ
What is the significance of Playtika's acquisition of Reworks?
How much did Playtika pay for Reworks Oy?
What impact will the acquisition have on Playtika's revenue?
What is the current market trend in the Design category?
