StockMarketWire.com - Peppa Pig owner Entertainment One said it had agreed to be acquired by US toymaker Hasbro for £3.3bn in cash.

eOne shareholders would receive £5.60 per share, representing a 31% premium to eOne's 30-day volume weighted average price as of Thursday.

Hasbro said the acquisition would advance its position as a play and entertainment company, adding global preschool brands with 'proven success and strong financial returns across platforms to Hasbro's robust portfolio'.

The deal was expected to generate synergies of around $130m by 2022, it added.

They would be driven by integration benefits, savings from moving a significant portion of eOne's toy business in-house and enhancing the profitability of eOne's licensing and merchandising activities.

The addition of eOne to Hasbro was expected to be boost earnings per share in the first year following the transaction, and deliver mid- to high-teens accretion to adjusted earnings per share in the third full year.

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