SEGA Corporation, a leading video game company and a subsidiary of SEGA SAMMY Holdings, has announced its plan to buy Rovio Entertainment Oyj, the Finnish mobile game developer behind the hit Angry Birds franchise. The deal, worth EUR 706 million, will be carried out through SEGA’s U.K. subsidiary SEGA Europe Limited. Rovio’s board and major shareholders have approved the offer and expressed their support.

Rovio is a global games company that has over 5 billion downloads for its mobile games, which include various entertainment, anime, and consumer products based on the Angry Birds brand. “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,” said Haruki Satomi, President & Group CEO, Representative Director of SEGA SAMMY Holdings. “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. I am confident that, through a combination of both companies’ brands, characters, fanbase, as well as corporate culture and functionality, there will be significant synergies created going forward.”

SEGA hopes to boost its global gaming presence and value by combining its existing businesses with Rovio’s assets, such as its worldwide IPs and live-operated mobile game development skills. Specifically, SEGA hopes to achieve synergies in the following areas:

• Leveraging Rovio’s know-how in running live service mobile games, to bring SEGA’s current and new titles to the global mobile gaming market, which has huge potential and many users. Rovio’s platform, Beacon, has been operating for 20 years in the U.S. and Europe
• Growing both companies’ fanbases through multi-media expansion of global characters. Rovio and SEGA have both extended IPs Angry Birds and Sonic the Hedgehog, to various media beyond video games, such as movies, anime and merchandising
• Supporting the cross-platform expansion of Rovio’s IP using SEGA’s capabilities. Rovio is aiming to expand its platform beyond mobile gaming, and SEGA will actively support this process through its capabilities

“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,” commented Alexandre Pelletier-Norman, CEO of Rovio. “Joining Rovio has been an honor and I am proud to have seen Angry Birds continue to grow, as we released new games, series and films. Less known but equally impressive is our industry-leading proprietary technology platform, Beacon, holding 20 years of expertise, allowing tight-knit teams to develop world-class GaaS products.

“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. 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.”