Japan’s Sega Sammy Holdings is set to acquire Finnish mobile gaming company Rovio Entertainment, the creator of the popular mobile game Angry Birds, for $776 million. The acquisition is aimed at strengthening Sega Sammy’s position in the mobile gaming market, which is witnessing rapid growth. Sega Sammy CEO Haruki Satomi said the company's goal has been to expand in the mobile gaming field.
The announcement stated that the takeover was friendly, and Rovio's board of directors supported the tender offer. Sega Sammy will launch the tender offer bid on May 8, offering 9.25 euros for each share, representing a 19% premium over Friday’s closing price, as per a Reuters report.
The news of the acquisition sent Rovio's shares soaring by 18.8% in early trade in Europe. However, Sega Sammy shares fell by 4.2% over investor doubts about synergy prospects.
Rovio CEO Alexandre Pelletier-Normand expressed his excitement over the potential of the combination of strengths of Rovio and Sega. This acquisition comes after Israeli company Playtika Holding Corp's failed $683 million takeover bid for Rovio in January.
Sega Sammy is hoping to bolster its mobile gaming business with this acquisition. The mobile gaming market is expected to continue its growth trajectory, and this acquisition will help Sega Sammy compete with other gaming giants in the market. Rovio is known for its Angry Birds franchise, which has been downloaded over four billion times since its launch in 2009. The company also has other popular games like Bad Piggies and Angry Birds Dream Blast in its portfolio.