VTech acquires struggling rival in education toys LeapFrog for around $72 million, following years of declining sales in part caused by more grown competition such as the Apple iPad.
Founded in 1995, Leapfrog was best known for the LeapPad. Initially an interactive digital book, the device was turned into a rugged mini-tablet in 2011, following the launch of the first iPad. The tablet-style LeapPad was popular at first, but sales started waning as Apple and other vendors started launching smaller, lower-cost tablets.
Further hurting LeapPad was children receiving hand-me-down tablets from parents. LeapFrog tried to fight the situation by shifting focus on iOS and Android apps, but such efforts were clearly not enough to save it from being swallowed by its biggest rival.
VTech says it will continue supporting LeapFrog apps. Recently VTech ended up with a tarnished reputation following the November 2015 security breach of "4,854,209 customer (parent) accounts and 6,368,509 related kid profiles worldwide" connected to its Learning Lodge app and Kid Connect services.