Sega Sammy Holdings, the parent company of Sonic The Hedgehog-maker Sega, has announced a deal to acquire Finland's Rovio Entertainment Oyj for $776 million.

Rovio is best known for the Angry Birds franchise, which contains over 30 games (primarily on mobile), two star-studded animated feature films and a merchandising empire.

Sega Sammy has offered a 19 per cent premium over Rovio’s closing price on Friday, and said that the deal will allow it to bolster its mobile gaming business – an area in which Sega has heavily invested but has yet to turn into a significant profit-generating unit.

In a statement, Sega Sammy chief executive officer Haruki Satomi, said: “In 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.”

The statement added that Rovio’s board of directors supported the tender offer, with the Finnish company’s chief exec Alexandre Pelletier-Normand adding: “"Combining the strengths of Rovio and Sega presents an incredibly exciting future.”

While Rovio’s share price significantly grew on the news, Sega Sammy shares dipped by over 4 per cent on the day prior to the tender as investors raised doubts about synergies. Critics have argued that Angry Birds, a property once synonymous with smartphone gaming, is past its peak and that there is uncertainty surrounding the success of future games in the franchise.

The news ends a months-long saga surrounding Rovio's acquisition. Israel's Playtika made a public bid for Rovio in January of $737.50 million, building on a previously rejected bid made privately in November 2022. Talks with Playtika were called off last month.

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