SEGA Corporation, a subsidiary of SEGA Sammy Holdings, has announced plans to acquire Finnish mobile games company Rovio Entertainment for €706 million (approximately $773.8 million). The acquisition, expected to close in the second quarter of fiscal year 2024/3, is subject to reviews under applicable antitrust laws and other customary conditions. This announcement is coming off of recent rumors of an acquisition that were leaked last week.
The acquisition comes as SEGA positions the Consumer segment of its Entertainment Contents Business as a growth area under its Mid-Term Plan (FY2022/3-FY2024/3). In line with its strategy to invest up to ¥250 billion by FY2026/3, SEGA has been seeking investment opportunities in the Consumer area to strengthen its development capabilities and create new ecosystems.
The global gaming market is projected to reach $263.3 billion by 2026, with the mobile gaming market set to grow at a CAGR of 5.0%, representing 56% of the global gaming market overall. SEGA aims to further strengthen its position in this rapidly growing market by leveraging Rovio’s expertise in live-operated mobile game development and mobile game operation.
Rovio, best known for the global Angry Birds brand, has seen its mobile games downloaded over five billion times. SEGA plans to generate synergies between its existing businesses and Rovio’s strengths, including global IPs, live-operated mobile game development capabilities, and a strong fanbase around the world.
SEGA has a history of acquiring development studios to strengthen its global development capabilities, including UK-based The Creative Assembly Ltd. in 2005 and Japan-based ATLUS. CO., LTD. (formerly, Index Corporation) in 2013. The acquired studios have all greatly expanded SEGA’s scale and released many new titles globally.
Haruki Satomi, President and Group CEO, Representative Director of SEGA SAMMY HOLDINGS, expressed his enthusiasm for the acquisition, stating that significant synergies would be created by combining the brands, characters, fanbases, corporate cultures, and functionalities of both companies.
Alexandre Pelletier-Normand, CEO of Rovio, shared his excitement for the future, stating that combining the strengths of Rovio and SEGA presents an incredibly exciting future. The acquisition will see two globally recognized and iconic characters, Red and Sonic the Hedgehog, joining forces under two remarkably complementary companies with a worldwide reach that spans mobile, PC/console, and beyond.
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