Japanese gaming giant Sega Sammy has agreed to buy Angry Birds maker Rovio Entertainment.
The groups confirmed in a joint statement this morning that Sega, the firm behind franchises such as Sonic the Hedgehog, will buy its Finnish rival for €706m (£625m).
It comes after Rovio confirmed the companies were in discussions over a potential offer on Saturday.
Sega will pay 9.25 euros per share and 1.48 euros per share option for the mobile gaming business.
The Japanese firm has said it plans to “accelerate” growth in the global gaming market through the deal and create synergies between the two businesses.
Alexandre Pelletier-Normand, chief executive officer of Rovio, said:“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.”