Finland’s Rovio Entertainment, best known for its Angry Birds mobile gaming franchise, has accepted a takeover offer from iconic Japanese game developer SEGA (a subsidiary of parentco SEGA Sammy). The deal is valued at US$776 million and will close in Q3 2023. 

Through the acquisition, SEGA aims to accelerate its growth in the mobile gaming space and leverage Rovio’s existing operations to bring its current and new titles to mobile platforms. The gameco’s portfolio of IPs includes Sonic the Hedgehog, party arcade game Super Monkey Ball and fighting game franchise Virtua Fighter. 

SEGA noted in its release about the deal that mobile games account for 56% of the global game market. And according to Dublin-based Research and Markets, the global mobile gaming market will generate US$253.2 billion in revenue by 2030, growing at a rate of 11.7% year over year from US$104.4 billion in 2022. “It has been SEGA’s long-term goal to accelerate its expansion in this field,” said Haruki Satomi, president and group CEO of SEGA Sammy.

Beyond mobile, SEGA will also work with Rovio to grow its audience via a new IP expansion strategy. Both companies have a proven track record of extending their flagship brands beyond video games into movies, TV shows and consumer products. And SEGA will support Rovio’s goal to leverage Angry Birds, which has racked up more than five billion downloads to date, in the console gaming space.