VTech to Acquire LeapFrog Enterprises
VTech Holdings Limited,a global electronic learning products and cordless telephones company, and LeapFrog Enterprises, Inc., a developer of educational entertainment for children, announce that VTech will acquire LeapFrog. The total purchase consideration amounts to approximately US$72 million and VTech will fund the tender offer through internal resources.
VTech plans to acquire 100 percent of the outstanding common stock of LeapFrog through an all cash tender offer followed by a second-step merger. In the tender offer, VTech will offer LeapFrog investors US$1.00 per share for LeapFrog's Class A and Class B shares, which represents a 75.4 percent premium over the closing price of LeapFrog's Class A shares on 4 February 2016.
The tender offer is expected to commence on or about 3 March 2016, and will be open for a minimum of 20 business days. The closing of the transaction is subject to satisfaction of certain conditions set forth in the merger agreement, which has been unanimously approved by the Boards of Directors of both companies. LeapFrog's Board has agreed to unanimously recommend to its stockholders that they tender their shares of LeapFrog common stock pursuant to the tender offer.
The acquisition and future investment by VTech is expected to be instrumental to helping the LeapFrog brand achieve thier mission of helping each child achieve their potential. For 20 years, LeapFrog products have combined educational expertise led by the LeapFrog Learning Team, with innovative technology and engaging play.
Founded in 1976, VTech has been a pioneer in the electronic learning toy category with products that provide learning to children across the world.
VTech plans to acquire 100 percent of the outstanding common stock of LeapFrog through an all cash tender offer followed by a second-step merger. In the tender offer, VTech will offer LeapFrog investors US$1.00 per share for LeapFrog's Class A and Class B shares, which represents a 75.4 percent premium over the closing price of LeapFrog's Class A shares on 4 February 2016.
The tender offer is expected to commence on or about 3 March 2016, and will be open for a minimum of 20 business days. The closing of the transaction is subject to satisfaction of certain conditions set forth in the merger agreement, which has been unanimously approved by the Boards of Directors of both companies. LeapFrog's Board has agreed to unanimously recommend to its stockholders that they tender their shares of LeapFrog common stock pursuant to the tender offer.
The acquisition and future investment by VTech is expected to be instrumental to helping the LeapFrog brand achieve thier mission of helping each child achieve their potential. For 20 years, LeapFrog products have combined educational expertise led by the LeapFrog Learning Team, with innovative technology and engaging play.
Founded in 1976, VTech has been a pioneer in the electronic learning toy category with products that provide learning to children across the world.