Sega to buy Angry Birds maker Rovio for €706m
Updated : 13:05
Japanese gaming company Sega Sammy has agreed to buy Finland’s Rovio Entertainment - the maker of Angry Birds - for €706m (£625m).
Under the terms of the deal, Sega will pay €9.25 per share in cash and €1.48 per share option.
Haruki Satomi, president and chief executive officer Sega Sammy 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. 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 combination of both companies’ brands, characters, fanbase, as well as corporate culture and functionality, there will be significant synergies created going forward."
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Rovio had been conducting a strategic review, making it ripe for the pickings of its bigger rivals. This is part of a bid by Sega to accelerate its position in the growing mobile gaming market.
"It’s already been adept at eking out fresh life for classic characters like Sonic the Hedgehog, so the Japanese firm is clearly hoping the acquisition of Rovio will catapult it into fresh franchise success."
Victoria Scholar, head of investment at Interactive Investor, said: "While Angry Birds has been an undeniable mega success with its mobile game, consumer products and even The Angry Birds Movie and a sequel, Rovio has struggled to replicate this with another blockbuster franchise, raising concerns about how the company plans to grow moving forward. Plus, a disappointing share price performance last year attracted potential bidders, hoping to swoop up the company at a discounted valuation.
"Sega Sammy is hoping that successful synergies will be made through a tie-up thanks to its similarities in terms of target customers, style of games, and brands."
Russ Mould, investment director at AJ Bell, said: "A shared fascination with animals doesn’t guarantee future success. Sega might be able to further milk Rovio’s existing intellectual property but very few titles can be regurgitated into successful new games and spin-off activities such as films and merchandise ad infinitum."