Electronic learning products company will acquire LeapFrog through a merger agreement.

VTech Holdings has agreed to acquire fellow kids' technology brand LeapFrog Enterprises for $72 million.

"We are delighted to have the LeapFrog brand joining VTech, bringing together two of the great names in children's learning and entertainment," says Allan Wong, chairman and chief executive officer, VTech. "VTech has been a pioneer in the electronic learning toy category for 35 years. The acquisition will allow us to offer the broadest portfolio of products that enhances the education and development of children across the world, while bringing them fun and joy."

"We believe this is a terrific opportunity for our employees, customers, and shareholders," says Bill Chiasson, chairman, board of directors, LeapFrog. "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."