Sega Sammy acquires Rovio, maker of Angry Birds, in €706 million takeover deal

Sega Sammy has agreed to buy Angry Birds maker Rovio Entertainment for €706 million ($776 million). Sega will pay €9.25 per share and €1.48 per share for the mobile gaming business. The Japanese company says that it plans to "accelerate" growth in the global gaming market through the deal. The news comes after it was reported that the two companies were in talks for a potential deal.

Sega Sammy owns some of the most popular multi-million-selling game franchises including Sonic the Hedgehog, Total War, and Yakuza.

Rovio CEO Alexandre Pelletier-Normand said:

“I grew up playing Sonic the Hedgehog, captivated by its state-of-the-art design. Later, when I played Angry Birds for the first time, I knew that gaming had evolved into a true mainstream phenomenon, with the power to shape modern culture.

Joining Rovio has been an honour and I am proud to have seen Angry Birds continue to grow, as we released new games, series and films. Our mission is to ‘craft joy’ and we are thrilled at the idea of using our expertise and tools to bring even more joy to our players, enhancing and expanding Rovio’s and Sega’s vibrant IPs.”

Sega Sammy’s mobile gaming business is mainly focused on the domestic market, while Rovio’s game is well known overseas. Rovio also rejected a €683 million ($750 million) takeover bid from its Israeli peer Playtika Holding Corp in January.

Sega CEO Haruki Satomi said:

“Among the rapidly growing global gaming market, the mobile gaming market has especially high potential, and it has been Sega’s long-term goal to accelerate its expansion in this field. Through combination of both companies’ brands, characters, fanbase, as well as corporate culture and functionality, there will be significant synergies created going forward.”

The deal between the two companies is expected to go through by the third quarter of this year.