Recent reports claimed that Sega would soon be announcing the acquisition of Angry Birds developer Rovio, and that announcement has indeed now been made. The Japanese company has confirmed that it has submitted an offer for the Angry Birds developer.
Sega is looking to acquire Rovio in its entirety in a deal worth €706 million, which roughly translates to a little over $775 million (as opposed to the previously reported $1 billion price). Sega confirms in its announcement that the acquisition is “a friendly takeover” and one that Rovio’s board of directors has “agreed to” and “expressed support towards”.
Unsurprisingly, Rovio’s ownership of the Angry Birds IP and its presence in the mobile gaming space are key to the acquisition. Sega says it “aims to accelerate its growth in the global gaming market and increase its corporate value by generating synergies between SEGA’s existing businesses and Rovio’s strengths, including its global IPs and live-operated mobile game development capabilities.”
The company will look to utilize Rovio’s “distinctive know-how in live service mobile game operation, to bring SEGA’s current and new titles to the global mobile gaming market, where there is large potential, and many users can be accessed.” It also intends to support cross-platform expansions of Rovio’s IPs and help both Rovio and Sega itself expand their IPs across media.
Sega’s president and CEO Haruki Satomi 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.”
Rovio’s CEO Alexandre Pelletier-Normand said: “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.
“Joining Rovio has been an honour 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.”
The acquisition is expected to close in the second quarter of FY 2023/24 (July-September).