The gaming firm known for “Sonic the Hedgehog,” Sega Sammy Holdings, has agreed a deal to acquire Rovio Entertainment, the mobile game company behind “Angry Birds”

The acquisition comes days after initial talks were reported, with SEGA paying €706m (£625m) for the Finnish-based firm as part of its aims to accelerate its growth in the global gaming market. The deal will increase SEGA’s corporate value by generating synergies between its existing businesses and Rovio’s, including its global IPs and live-operated mobile game development capabilities.

Rovio and SEGA have both succeeded in extending their IPs, “Angry Birds” and “Sonic the Hedgehog,” to various media outside of video games, such as movies, anime and merchandising with global fanbases.

“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,” says Haruki Satomi, president, group chief executive officer, representative director, Sega Sammy Holdings. “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.

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“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.”

“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,” says Alexandre Pelletier-Normand, chief executive, Rovio

“Joining Rovio has been an honor 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.”

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The deal is subject to shareholder and regulatory approval.