Japanese gaming company Sega has reached an agreement to acquire “Angry Birds” game developer Rovio Entertainment. Sega says it wants to expand its mobile gaming portfolio. Sega has offered 706 million euro ($776 million), which values Rovio’s stock at approximately $10.23 per share
“I grew up playing Sonic the Hedgehog, captivated by its state-of-the-art design,” said Rovio’s CEO Alexandre Pelletier-Normand. “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.”
“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,” he continued. “Red and Sonic the Hedgehog: two globally recognized and iconic characters made by two remarkably complementary companies, with a worldwide reach that spans mobile, PC/console, and beyond. Combining the strengths of Rovio and SEGA presents an incredibly exciting future.”
Sega Sammy’s CEO, Haruki Satomi, said the aim of the acquisition is to increase Sega’s position in mobile games.
“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,” he said. ” I feel blessed to be able to announce such a transaction with Rovio, a company that owns ‘Angry Birds,’ which is loved across the world, and home to many skilled employees that support the company’s industry-leading mobile game development and operating capabilities.”
“Historically, as represented by the ‘Sonic the Hedgehog’ series, SEGA has released countless video game titles to various gaming platforms,” he continued. “I am confident that, through the combination of both companies’ brands, characters, fanbase, as well as corporate culture and functionality, there will be significant synergies created going forward.”
The Acquisition is a friendly takeover, as Rovio’s board of directors has agreed to, and has expressed support towards the Tender Offer. Shareholders in Rovio who in aggregate hold shares corresponding to approximately 49.1% of the outstanding shares and votes in Rovio, have irrevocably undertaken to accept the Offer, subject to certain customary conditions. The Acquisition is expected to close in the second quarter of FY2024/3 and is contingent on the completion of reviews under applicable antitrust laws and other customary conditions.