The sale of the Canadian e-reading company Kobo to Japanese Internet and e-commerce giant Rakuten for $315 million has been finalized and approved by the Canadian government.

Indigo Books and Music received $146 million from the proceeds of the sale. Indigo created Kobo first as its digital reading arm and then spun it off as a separate company in late 2009, while still maintaining a controlling interest. "We are enormously proud of having created Kobo and of the achievements of the Kobo team. It is a wonderful and true Canadian business success story," said Heather Reisman, founder and CEO of Indigo. "Notwithstanding the sale, Indigo intends to maintain a very strong relationship with Kobo, supporting the products and eReading services our customers have come to love and directly benefiting from the growth of the Canadian eReading market," she added.

Kobo’s management team will remain with the company, headquartered in Toronto, “As a part of Rakuten, we will accelerate our growth internationally, bringing new products, a leading eReading experience and a world class catalogue to passionate readers everywhere,” said Kobo CEO Michael Serbinis.