Sega, the creator of Sonic-the-hedgehog, has tendered a £625mln offer for Rovio Entertainment, owner of the Angry Birds franchise.
The deal will see all outstanding shares in Rovio bought for €9.25 each, more than a 50% upside to the €6 price at the start of 2023.
The Japanese buyer stated it plans “to strengthen [Rovio] through initiatives such as converting existing IPs into global brands and strengthening user engagement through multi-platform support.”
The takeover has the support of Rovio’s board, which owns around 49% of the Finnish developer, strengthening the likelihood that the deal with succeed.
Sega will also use the company’s expertise to help infiltrate the mobile games industry as it estimates it could become worth US$260bln by 2026.
Rovio’s purchase is part of a ¥250bln growth strategy from Sega to “explore investments in the consumer area” and “strengthen its development capabilities.”
“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, chief executive at Rovio.
Sega rose to prominence in the late 80s for its consoles like the Genesis before it began producing games like the Sonic series and Total War.
Shares in the group have risen by 50% in the last five years to reach around ¥2500 but remain behind the ¥4,700 heights seen in 2006.