Words With Friends game maker Zynga announced that it is acquiring U.K.-based gaming company NaturalMotion for $US527 million in cash and equity.
The company also announced that it would be laying off about 15% of its workforce — that comes out to roughly 314 employees.
Although the company posted fourth-quarter revenue of $US147 million, which is $US6 million better than expected, user numbers continue to decline across the board.
“We can’t wait to see what we can achieve together with Zynga,” said Torsten Reil, CEO and co-founder of NaturalMotion, which makes the games CSR Racing and Clumsy Ninja.
Zynga’s stock was up around 20% per cent in after-hours trading.