Words With Friends game maker Zynga announced that it is acquiring U.K.-based gaming company NaturalMotion for $527 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 $147 million, which is $6 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% percent in after-hours trading.
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