Hasbro the world's second-largest toy and game company, said on Friday it agreed to acquire board game maker Cranium Inc for about $77.5 million.
The acquisition of privately held Cranium will add to a Hasbro games portfolio that already includes Monopoly, Scrabble and Trivial Pursuit.
The price may be adjusted based on Cranium's net assets on the closing date, Hasbro said. The deal is expected to close during the first quarter of 2008.
"This acquisition is consistent with Hasbro's ongoing strategy to bring to market the most innovative toy and game brands in the world," said Brian Goldner, chief operating officer for Hasbro.
Seattle-based Cranium was co-founded in 1998 by Scottish entrepreneur Richard Tait and business partner Whit Alexander, who met while working at Microsoft Corp (MSFT.O: Quote, Profile, Research).
Wachovia Capital Markets analyst Tim Conder said Cranium is a strong brand and estimated it has revenues of at least $100 million.
In a research note, Conder said his firm believes Hasbro will leverage Cranium games into its licensing agreement with Electronic Arts Inc
Source: Reuters