Mobile games company Playtika announced a deal to pour at least $400 million into design entertainment app Redecor, as it looks to further enhance its play in the casual gaming genre.
Under the initial phase of the agreement, Playtika has acquired 80 per cent of Finland-based Reworks, which developed the app in April 2020.
The remaining stake will be purchased for up to $200 million, provided earnings for 2022 meet an agreed target. In the case the goal is not reached, the 20 per cent stake will be taken over by Playtika for $1.
Playtika expects the move to contribute approximately $30 million to its 2021 revenue.
Redecor allows users to experiment with various home decor styles, learn about interior design and take part in challenges. It is currently the second most-popular design entertainment app based on revenue from in-app purchases, data from App Annie showed.
Playtika CEO Robert Antokol believes the takeover will allow the company to establish “a leading presence in a category that clearly commands a lot of interest” and could potentially serve as a base to set foot in other genres beyond traditional gaming.
In an interview for Bloomberg, Antokol pointed to potential development of titles in the restaurant, automotive and fashion genres.
Playtika also asserted it was “well positioned” to continue its acquisition spree, with approximately $1.4 billion left for future deals.
The developer was previously known for titles in the casino genre, including Slotomania and Bingo Blitz, but started pursuing expansion into casual gaming in October 2017 with the takeover of Jelly Button Games.Subscribe to our daily newsletter Back