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In a deal valued at more than €700m, Sega will acquire Finland’s Rovio as the Japanese giant tries to strengthen its position in mobile gaming.
Japanese video game giant Sega has agreed to buy Angry Birds creator Rovio Entertainment for more than €700m.
In an announcement today (17 April), Sega said it will acquire the Finnish mobile gaming company at €9.25 per share and €1.48 per option, which values the deal at €706m.
Haruki Satomi, president and group CEO of Sega, said that the rapidly growing mobile gaming market has been a target of expansion for the gaming giant.
“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,” Satomi said.
“Through a combination of both companies’ brands, characters, fanbase as well as corporate culture and functionality, there will be significant synergies created going forward.”
According to Sega, which is behind the popular Sonic the Hedgehog franchise, the mobile gaming market is projected to grow to $263.3bn by 2026, with the percentage of mobile gaming expected to increase to 56pc.
Other than Angry Birds, which became a mobile gaming sensation when it was first released on 2009, Rovio has also developed a proprietary technology platform called Beacon that has two decades of “high-level expertise in live service-mobile game operation” in the US and Europe.
“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,” said Alexandre Pelletier-Normand, CEO of Rovio.
“Red and Sonic the Hedgehog: two globally recognised 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.”
According to a BBC report, Rovio’s revenues increased to €317.7m in 2022 from €272.3m in 2020, but over the same period its operating profits have fallen from €42.5m to €28.6m.
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