Playtika acquires Reworks. If the studio fails to meet its KPI by 2023, Playtika will get 20% for $1

Game development company Playtika announced the acquisition of Finnish studio Reworks, which developed designer simulator Redecor, the company’s official release reports.

  • This deal has some conditions. Playtika has so far bought 80% of Reworks for $400 million in cash. The Israeli company will acquire the remaining 20% of the studio for another $200 million in 2023, but only if the Finnish company meets its EBITDA target for 2022.
  • If Reworks fails to meet its KPI target, the remaining stake will go to Playtika for $1.
  • Playtika expects the deal to contribute about $30 million more to the company’s 2021 revenue.
  • This deal is Playtika’s eighth acquisition of mobile game studios or similar intellectual property since its founding in 2010.
  • The Israeli company has another $1.4 billion for future M&A deals.

Playtika has developed Caesars Casino, Slotomania, House of Fun, Bingo Blitz, and other popular mobile games. In 2011, Playtika was acquired by Caesars Interactive Entertainment for $100 million. In August 2016, a consortium of Chinese companies, led by Giant, bought the company for $4.4 billion.

The company has offices in Ukraine, particularly in Kyiv, Vinnytsia, and Dnipro, with more than 600 employees. In 2019, the company opened the R&D center of the previously acquired German game company Wooga in Ukraine.