VTech to acquire rival LeapFrog

$72 million deal will see two electronic learning licensees merge.

Electronic learning specialist VTech is to acquire its competitor LeapFrog in a $72 million deal.

Chairman and group ceo, Allan Wong, said that he was “delighted” to have the LeapFrog brand joining VTech, “bringing together two of the great names in children’s learning and entertainment”.

VTech will offer LeapFrog investors $1 per share. It is planning to acquire 100% of the outstanding common stock of LeapFrog through an all cash tender offer, followed by a second-step merger.

LeapFrog has a number of licensing agreements in its portfolio. Most recently, it secured a new partnership with BBC Worldwide to launch three new apps based on some of CBeebies’ most popular characters.

These included Hey Duggee, Charlie & Lola and Sarah & Duck.

Meanwhile, VTech works with big names including Disney and Nickelodeon on its software portfolio for the InnoTab device.

Bill Chiasson, chairman of LeapFrog’s board of directors, commented: “The acquisition and future investment by VTech will be instrumental to helping the LeapFrog brand achieve the mission of helping each child achieve their potential.”

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