SEGA Announces Strategic Acquisition of Rovio for EUR 706 Million
After numerous reports, SEGA Corporation, a subsidiary of SEGA SAMMY HOLDINGS, has officially announced its plans to acquire Rovio Entertainment Oyj through its wholly-owned UK subsidiary SEGA Europe Limited.
The tender offer, which aims to acquire all of Rovio’s outstanding shares and options, is set at EUR 9.25 per share and EUR 1.48 per option, totaling approximately EUR 706 million / ¥103,680 million which is less than the reported figure of $1 billion by WSJ.
The acquisition, which is expected to close in the second quarter of FY 2024, has received support from Rovio’s board of directors and shareholders who collectively hold about 49.1 percent of the outstanding shares and votes in Rovio, subject to certain customary conditions and reviews under applicable antitrust laws.
SEGA’s decision to acquire Rovio is part of its growth strategy to invest up to ¥250 billion during the five-year period ending FY 2026, with a focus on strengthening its development capabilities and creating new ecosystems in the consumer segment of its Entertainment Contents Business.
SEGA sees the acquisition of Rovio as a strategic move to further strengthen its position in the fast-growing mobile and global gaming market. The company aims to leverage Rovio’s expertise in live-operated mobile game development and its global IPs to accelerate its growth in the gaming market and increase its corporate value.
The acquisition is expected to generate synergies between SEGA’s existing businesses and Rovio’s strengths, particularly in areas such as live service mobile game operation, multimedia expansion of global characters, and cross-platform expansion of Rovio’s IPs using SEGA’s capabilities.
Haruki Satomi, the CEO of SEGA, commented on the acquisition, saying,
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 the combination of both companies’ brands, characters, fanbase, as well as corporate culture and functionality, there will be significant synergies created going forward.”
Alexandre Pelletier-Normand, CEO of Rovio also shared his thoughts:
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 honor 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 (Games as a Service) 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.”
He further mentions that Red (the iconic Angry Birds character), and Sonic the Hedgehog are iconic characters with a worldwide reach across mobile, PC/console, and beyond. Combining the strengths of Rovio and SEGA presents an incredibly exciting future.
What do you think about this acquisition? How will it benefit gamers and consumers around the globe? Let’s discuss this in the comments section below.
