Japanese gaming giant Sega Sammy has agreed to buy Angry Birds maker Rovio Entertainment.

The groups confirmed in a joint statement on Monday that Sega, the firm behind franchises such as Sonic the Hedgehog, will buy its Finnish rival for 706 million euros (£625 million).

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.

“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.

“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.”

Haruki Satomi, president and group chief executive officer of Sega Sammy, said: “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.”