After dominating headlines amidst its toy data breach scandal, Hong Kong-based VTech is back in the news one again with its plans to acquire US-based LeapFrog Enterprises in a US$72-million deal that will merge two major electronic learning companies.

VTech plans to acquire 100% 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, and VTech will fund the tender offer through internal resources.

The offer is expected to take effect March 3 and it will remain 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.

With its lineup of electronic learning devices, VTech has been a fixture in the learning toy category for more than three decades. Its acquisition of LeapFrog, which for its part has sustained sales losses due to unsold inventory and delayed product launches, will open the door for a larger portfolio of products.