Video games manufacturer SEGA Sammy Holdings Inc. submitted a €706 million ($776 million) bid to acquire mobile games developer operating out of Finland, Rovio Entertainment.

Japanese-based game company SEGA Sammy announced today that its UK subsidiary, SEGA Europe Limited, has entered into a definitive agreement and submitted a tender offer to acquire the entirety of outstanding shares and options of the mobile games developer behind Angry Birds, Rovio Entertainment, at €9.25 ($10.17) per share and €1.48 ($1.63) per option.

Haruki Satomi, president and group chief executive officer of SEGA Sammy, outlined that the takeover bid is aligned with the company’s “long-term goal to accelerate its expansion” in the high potential-bearing mobile gaming segment of the rapidly growing global gaming market.

“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,” said Satomi.

The takeover bid which was approved by the Board of Directors at SEGA Sammy during their meeting earlier today is supported by the Board of Directors at Rovio, and shareholders of 49.1% of the outstanding shares and votes of Rovio have irrevocably undertaken to accept the offer, subject to certain customary conditions.

Bringing Joy Together

Alexandre Pelletier-Normand, chief executive officer of Rovio, highlighted the power of gaming to shape modern culture as “a true mainstream phenomenon”, reminiscing on the times he had been playing Sonic the Hedgehog and later on, Angry Birds.

He also paid tribute to Rovio’s proprietary technology platform, Beacon, and its 20 years of expertise allowing development teams to create world-class GaaS products, convinced that the combination with SEGA Sammy will further the company’s mission to “Craft Joy” by bringing even more joy to its players.

“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, [and] combining the strengths of Rovio and SEGA presents an incredibly exciting future,” Pelletier-Normand concluded.

The acquisition will allow SEGA to accelerate growth, generate synergies between its existing businesses and Rovio’s global intellectual properties (IPs) and live-operated mobile game development capabilities to increase SEGA’s corporate value, expand both companies’ fan base, and achieve cross-platform expansion of Rovio’s IP using SEGA’s capabilities.

The tender price offers approximately a 19% premium to the share closing price on April 14, 2023, the last trading day before the offer was announced, and approximately a 17.5% premium on the three-month volume-weighted average price ending April 14, 2023.

The tender offer will commence on or around May 8, 2023, pending approval by the Finnish Financial Supervisory Authority and will be considered successful in case SEGA acquires a minimum of 90% of the outstanding shares and voting rights at Rovio.

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