Playtika enters the Design Entertainment market with the acquisition of Reworks, maker of Redecor

  • Redecor combines home design and games in the # 2 Design Entertainment app.

  • Playtika will leverage its proven expertise in live operations and its Boost technology platform to expand into the large and growing category of design.

  • The acquisition strengthens 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, August 31, 2021 (GLOBE NEWSWIRE) – Playtika Holding Corp. (NASDAQ: PLTK) today announced the acquisition of Reworks Oy, creator of the successful Design Entertainment app, Redecor. In 18 months since its launch, Redecor has become Design Entertainment’s # 2 app based on in-app purchase revenue. Playtika, a leader in mobile games, live operations and technology, will leverage its expertise to make Redecor a premier destination for design enthusiasts for years to come.

In-app purchase revenue in the Design Entertainment category has grown at a compound annual growth rate of 33% since 2019,[i] based on App Annie. Interior design accounts for 12% of all ecommerce sales in the United States, is one of the most popular categories on Pinterest, and returns over 100 million interior design related Instagram posts.[ii] Home Décor appeals to a similar demographic as Playtika’s 36 million monthly active users.

“As the fragmented and historically offline home decor 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, ”said Playtika Co-Founder, CEO and Chairman Robert Antokol. “Redecor provides incredible entertainment for design enthusiasts and we intend to use our expertise in mobile games, live operations and technology to take it to new heights. Reworks’ talented team will enable us to build new applications in-house to drive future organic growth across digital entertainment and application ecosystems. We are delighted to welcome Reworks to the Playtika family.

“At Redecor, we have set out to create a premier entertainment product for the design community and we are excited to be able to accelerate its growth with a partner like Playtika,” said Ilkka Teppo, Co-Founder and CEO of Reworks. “Our strong creative capabilities complement Playtika’s expertise in technology and data, a fit that we believe will be of great benefit to our future growth.”

Helsinki-based Reworks will further strengthen Playtika’s existing presence in the city, a leading games and mobile application platform. “The addition of such a creative team with a history of building successful mobile apps and entertainment products will help us continue to attract top talent from the Nordic region who want to work on incredible mobile experiences,” Antokol said.

Playtika acquired 80% of Reworks for $ 400 million in cash. Playtika will purchase the remaining 20% ​​of Reworks for up to $ 200 million, based on the company’s 2022 EBITDA (as defined in the definitive acquisition agreement). In the event that the agreed 2022 Company EBITDA target is not exceeded, the remaining 20% ​​will be transferred to Playtika for $ 1. This acquisition is expected to bring approximately $ 30 million in revenue to Playtika’s revenue in 2021. This transaction marks Playtika’s 8the acquisition of a mobile game or intellectual property since its creation in 2010. Following this transaction, Playtika remains well positioned to pursue its strategy of mergers and acquisitions, with approximately $ 1.4 billion in cash available for future transactions.

About Reworks Oy

Reworks is a Helsinki, Finland-based mobile apps company that merges lifestyle content and social games. Our apps stimulate creativity and unleash the creator in all of us. We are best known for Redecor, a fusion of home design and mobile games. Redecor has attracted a dedicated audience who love to design, find inspiration, and connect with other interior design enthusiasts.

About Playtika Holding Corp.

Playtika Holding Corp. is a leading mobile games company and monetization platform with over 36 million monthly active users on a game portfolio. Founded in 2010, Playtika was among the first to bring free social games to social media and, soon after, to mobile platforms. Based in Herzliya, Israel, and guided by the mission to entertain the world through endless ways to play, Playtika has 19 offices around the world, including Tel Aviv, London, Berlin, Vienna, Helsinki, Montreal, Chicago, Las Vegas, Santa Monica, Newport Beach, Sydney, Kiev, Bucharest, Minsk, Dnieper 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”, “intention”, “think”, “anticipate” and “believe”, among others, generally identifies forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding: the expected timing of the transaction, the future financial performance of Playtika, the business outlook and strategy of Playtika, anticipated trends and other similar matters. These forward-looking statements are based on management’s current expectations and assumptions regarding 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 various reasons, including, but not limited to: uncertainties relating 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. transaction, the impact of the transaction on Playtika’s business, the possibility that Playtika may not recognize the expected benefits of the transaction, including failure to develop new offerings and applications or to improve existing offerings and applications to meet to users and customers needs and respond to emerging technological trends and other circumstances beyond the control of Playtika. Some of these and other risks and uncertainties are discussed in documents filed by Playtika with the Securities and Exchange Commission (“SEC”), including its Form 10-K filed with the SEC on February 26, 2021. Other unknown or unforeseeable factors which could also adversely affect the business, financial condition and results of operations of Playtika may arise from time to time. In light of these risks and uncertainties, these forward-looking statements may not prove to be correct. Therefore, you should not place undue reliance on these forward-looking statements, which represent only the views of the management of Playtika as of the date of this press release. Playtika does not undertake to update these forward-looking statements.

[i] IAP earnings based on data from AppAnnie. Compound 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, in-app purchases from January 1, 2019 through January 30, 2019. July 2021.

[ii] “US Furniture and Housewares E-Commerce Revenue from 2017 to 2025,” Statista, July 5, 2021, https://www.statista.com/statistics/278896/us-furniture-and-home- furnishings-retail- e-commerce-sales-part /; “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

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