Sega, the Japanese gaming giant behind the Sonic the Hedgehog character, is acquiring Rovio, the maker of many successful mobile games such as Angry Birds. Sega will pay 775 million dollars to Finland-based Rovio. Sega announced that it aims to strengthen its position in the global gaming market.
Japan-based gaming giant Sega announced the acquisition of a European company.
Sega, which has signed important games such as Sonic the Hedgehog, will acquire Rovio, the leading company in the mobile game world, for 775 million dollars.
Angry Birds, produced by Rovio, was the first mobile game to exceed 1 billion downloads.
Announcing the deal, Sega said its decision to acquire Rovio was based on the need to “strengthen its position” in the global gaming market.
Last year, Rovio, which employs around 550 people in eight game studios around the world, announced that downloads of its stable of games had reached five billion.
This market is expected to grow to $263.3 billion by 2026 and the percentage of mobile games is expected to increase to 56. In addition to strong games, Rovio also owns a mobile gaming platform called Beacon.
Sega said it will utilize Rovio’s “distinctive know-how in live-service mobile gaming operation” to help bring its own existing and new games to the global mobile gaming market.
SEGA’S LONG-TERM GOAL
Haruki Satomi, CEO of Sega Sammy Holdings, said, “Among the rapidly growing global gaming market, the mobile gaming market has particularly high potential, and it has been Sega’s long-term goal to accelerate its expansion in this area.”
“I feel fortunate to be able to announce such a transaction with Rovio, home of the globally beloved ‘Angry Birds’ and home to many highly skilled employees who support the company’s industry-leading mobile game development and execution capabilities,” said Satomi.
Rovio’s revenues increased from €272.3 million in 2020 to €317.7 million in 2022, but operating profit fell from €42.5 million to €28.6 million over the same period.
Rovio’s stock market capitalization was 707 million at the close on Friday, but the company’s shares rose nearly 18% on Monday after the deal with Sega was agreed.
Sega and Sammy Corporation merged in 2004 to form Sega Sammy Holding.
Sega has produced several million-selling video game franchises and is known worldwide for the character Sonic the Hedgehog, who appeared in two movies.
Sega also sells arcade machines.