Sega Cuts Deal To Buy Power Rangers Parent

Sega, well-known for its Genesis video game players, is planning a new beginning with the $1.09 billion purchase of Bandai Co., the company behind the Power Rangers.

The deal, announced Thursday, will combine Sega Enterprises Ltd. with Bandai to form Sega Bandai Ltd. Sega, Japan’s largest maker of video game machines, says the merger will help it find more ways to grow.

Sega and Bandai, also a Japanese company, have been hurt in recent years by disappointing sales and stiff competition.

Industry analysts said the deal will help Sega keep a firm foothold in the game business, where its profit margins have been under heavy pressure.

In addition, Bandai, which is best known for the Power Rangers boom of the early 1990s, will be able to pursue more opportunities in multimedia, like computer game software and movie distribution.

The merger is expected to be completed on Oct. 1.