February 5, 2016 / 2:42 PM / 3 years ago

Hong Kong's VTech agrees to buy LeapFrog for $72 mln

(Reuters) - Hong Kong-based VTech Holdings Ltd (0303.HK) said it would buy U.S. toymaker LeapFrog Inc LF.N for about $72 million.

VTech’s offer of $1 per share represents a 78.5 percent premium to LeapFrog’s Thursday’s close of $0.56.

The electronic toymaker said LeapFrog would become its indirect wholly-owned unit.

VTech, which sells children's tablets, electronic learning toys and baby monitors, had disclosed in November that it had been hacked that led to customer data being compromised. (reut.rs/1K2CigT)

Emeryville, California-based Leapfrog had reported lower-than-expected second-quarter sales in November and said it expected its 2016 sales to “contract considerably”.

(This version of the story corrects paragraph 3 to say LeapFrog will “become an indirect wholly-owned unit” of VTech, not “the combined company would be renamed as LeapFrog”)

Reporting by Abhijith G in Bengaluru; Editing by Anil D'Silva

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