Rovio Entertainment Oyj ROVIO has agreed to a takeover deal of 706 million euro from Sega, bringing the total to $776.1 million.
The Wall Street Journal reported earlier this month that Sega Sammy Holdings Inc. 6460 was nearing a deal to acquire the company behind the Angry Birds mobile game.
In 2004, Sega Sammy, the Japanese slot machine company, was created by the creation of Sammy Corp. and Sega Corp., the videogame maker behind the character Sonic the Hedgehog.
The deal will see Sega pay €9.25 in cash for each Rovio share and EUR 1.48 in cash for each Rovio option.
Rovio had been discussing talks with Israeli entrepreneur Playtika Holding Corp. regarding a possible share takeover of the company, but talks ended last month without a deal.
Among the rapidly expanding worldwide 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, said Haruki Satomi, the company's chief executive.
By combining both companies' brands, characters, fans, as well as corporate culture and functionality, there will be substantial synergies created going forward. Rovio recommends that shareholders accept Sega's offer and said shareholders representing 49.1% of the shares and votes have agreed to accept the deal.
The deal is expected to be completed in the third quarter of 2023.