Mattel Buys Radica

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Mattel Inc. will purchase Radica Games Ltd., $230 million, or $11.55 a share. This is the El Segundo-based toy company’s first major acquisition since the late 1990s.


Radica, a Bermuda toymaker based in Hong Kong, makes games and other products including 20Q, Play TV and Girl Tech products.


“The addition of Radica to the Mattel portfolio provides Mattel the opportunity to partner our global brands with Radica’s technological expertise to better participate in the burgeoning electronic toys arena,” Robert Eckert, Mattel’s chairman and chief executive, said in a statement.


The acquisition is another step for Mattel to enter the market for 8- to 12-year-olds in its continued expansion into more tech-oriented products. Last week Mattel announced the upcoming release of HyperScan, a hybrid video game system that combines video games and card collecting.


Hasbro Inc., Mattel’s main competitor, has been building up tech offerings as children have become more interested in electronic games.


Radica had sales last year of $163 million and announced in April that it was looking for a buyer. The transaction is subject to approval by Radica shareholders.

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