Sega, the Japanese gaming company known for its iconic Sonic the Hedgehog character, has announced plans to acquire Finnish mobile gaming giant Rovio Entertainment for a staggering €706 million ($776 million) on Monday. The deal encompasses all of Rovio's outstanding shares and options, valuing stocks at €9.25 per share and options at €1.48 per option.
The offer represents approximately a 19% premium over the company’s closing price on Friday and is backed by 49% of shareholders. Sega intends to utilize Rovio's "distinctive know-how in live service mobile game operation" as they work towards bringing both current and new titles from Sega into the global mobile gaming market.
Earlier this year, The Wall Street Journal reported that takeover talks were underway between Rovio Entertainment and Israeli rival Playtika Holding. While Sega confirmed these discussions took place, they clarified that no formal decision had been made at that time.
Rovio Entertainment is best known as the creator of the wildly popular "Angry Birds" mobile-game series. With this almost $800 million deal in place with Japan’s Sega Sammy Holdings Inc., stock prices in Rovio have risen nearly 18%, standing at 9.16 euros compared with Sega's bid of 9.25 euros per share.
"The likely deal was first reported Friday by WSJ," said John Smithers, Senior Analyst at International Game Research Institute (IGRI). "This acquisition will allow not only expansion opportunities for both companies but also an interesting fusion between two giants within their respective markets."