VTech has announced it plans on purchasing LeapFrog as both companies have entered into a merger agreement, which both plan on completing next month.

The VTech will spend roughly $72 million to acquire LeapFrog, and if the merger agreement proceeds as scheduled, it will consolidate the educational games market as both companies have been quite prominent in the industry for several years now. Both VTech and LeapFrog have created toys, games, and consoles designed for children.

"We are delighted to have the LeapFrog brand joining VTech, bringing together two of the great names in children's learning and entertainment," said Allan Wong, Chairman and Group CEO of VTech Holdings Limited. "VTech has been a pioneer in the electronic learning toy category for 35 years. The acquisition will allow us to offer the broadest portfolio of products that enhance the education and development of children across the world, while bringing them fun and joy."