Two entertainment licensing app companies are set to merge following New York-based mobile studio Cupcake Digital’s acquisition of iStoryTime developer zuuka. The deal will position Cupcake as one of the largest indie chidren’s app developers with a library of more than 250 titles.

Cupcake and zuuka have both made their marks in the entertainment licensing app arena, with Cupcake having built its portfolio based on well-known characters such as Kung Fu Panda, Jim Henson’s Fraggle Rock, Strawberry Shortcake, VeggieTales, Yo Gabba Gabba!, Animal Planet, and The Smurfs.

zuuka, meanwhile, has seen a steady rise to prominence through its iStoryTime library. The company is home to more than 200 book apps all of which are based on licensed properties such as Ice Age, The Croods and Smurfs. iStoryTime also develops content for large publishers like HarperCollins, with whom the company recently developed five Biscuit titles for iOS, Kindle, Android and Nook devices.

zuuka founders Graham Farrar and Woody Sears will hold senior management positions at Cupcake Digital.