When you think of SEGA, you might think of Sonic the Hedgehog and an era of video games when the company was a more major player. Now, however, SEGA may be on the move once more, purchasing big studios and intellectual properties.
SEGA Corporation (the “Company”), a subsidiary of SEGA SAMMY HOLDINGS, at the meeting of its Board of Directors held on April 17, 2023, resolved to implement a tender offer (tender offer under the Finnish Law, the “Tender Offer”) to acquire Rovio Entertainment Oyj (“Rovio”), a mobile game company headquartered in Finland, through SEGA’s wholly-owned UK subsidiary SEGA Europe Limited (the “Acquisition”) and SEGA SAMMY HOLDINGS has entered into a definitive agreement with Rovio pursuant to which the Tender Offer is made.
Through the Tender Offer, SEGA aims to acquire the entirety of Rovio’s outstanding shares and options at EUR 9.25 per share and EUR 1.48 per option, or EUR 706 million in total (approximately ¥103,680 million converted at EUR1 = ¥146.9 (FX rate as of April 14, 2023). The same FX rate is applied hereinafter). The Acquisition is a friendly takeover, as Rovio’s board of directors has agreed to, and has expressed support towards the Tender Offer. Shareholders in Rovio who in aggregate hold shares corresponding to approximately 49.1 percent of the outstanding shares and votes in Rovio, have irrevocably undertaken to accept the Offer, subject to certain customary conditions. The Acquisition is expected to close in the second quarter of FY2024/3 and is contingent on the completion of reviews under applicable antitrust laws and other customary conditions.
The head of SEGA was very positive about the acquisition:
Among the rapidly growing global gaming market, the mobile gaming market has especially high potential, and it has been SEGA’s long-term goal to accelerate its expansion in this field. 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 combination of both companies’ brands, characters, fanbase, as well as corporate culture and functionality, there will be significant synergies created going forward.
— Haruki Satomi, President of SEGA Sammy Holdings
And as you might suspect, so was Alexandre Pelletier-Normand, the head of Rovio:
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 honour 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 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.
Red and Sonic the Hedgehog: two globally recognized and iconic characters made by two remarkably complementary companies, with a worldwide reach that spans mobile, PC/console, and beyond. Combining the strengths of Rovio and SEGA presents an incredibly exciting future.
Will SEGA now begin creating a vast number of Angry Birds titles in an attempt to revive the franchise? Or will they perhaps use Rovio’s diminished yet existent talent pool to bolster efforts at creating more Sonic and SEGA IP entries?
It will be interesting to watch for sure. That’s even more true given the huge amount of money spent in purchasing Rovio! Total cost: $775 Million.
For all the latest news that should be fun, keep reading That Park Place. As always, drop a comment down below and let us know your thoughts!
