(MAT - Get Report)
agreed to buy electronic toy maker
(RADA - Get Report)
for $11.55 a share, or $230 million in cash.
Radica, a Bermuda company headquartered in Hong kong with an office in Dallas, makes electronic games carrying the Radica, 20Q and Play TV brand names. It also sells youth electronics carrying the Girl Tech brand name.
"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," said Robert A. Eckert, chairman and chief executive officer of Mattel. "Radica's entrepreneurial spirit has allowed Radica to capture and deliver on some of the hottest trends in electronics, and the company has a proven track record of utilizing technology to reinvent basic play."
Radica's largest shareholder has entered into a voting agreement in which he has agreed to vote shares constituting 40% of Radica's outstanding common stock in support of the transaction. It is expected that the transaction will be completed in the fourth quarter of 2006.
Radica had 2005 revenue of $163 million and employs over 6,000 people worldwide. Internationally Radica sells products in some 30 countries, Mattel said.