Thursday, May 17, 2007

Mattel Inc. to Purchase Radica Games Ltd. for 1.41 Times Revenue

The Deal: Mattel Inc. has agreed to acquire Radica Games Ltd. for
$11.55 per share, or $230 million, in cash. The purchase price
represents a premium of 12 percent over Radica's closing price prior to
the deal announcement. The boards of both companies have approved the
transaction. The deal still requires shareholder and regulatory
approvals. The transaction is expected to close in the fourth quarter
of 2006.

Discussion: Radica Games manufactures and markets electronic
entertainment products under the Radica, 20Q, Play TV, and Girl Tech
brand names. The company, which maintains a design and marketing office
in Dallas and a manufacturing plant in China, sells products in about
30 countries.

Mattel Inc. produces a wide range of popular toys and games. Company
products include Barbie dolls and products, Fisher-Price toys, Hot
Wheels and Matchbox cars, and American Girl dolls and books. The
company also produces licensed items, including toys based on Sesame
Street, Barney, various Walt Disney properties, and the Harry Potter

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