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Children’s book and audiobook publisher Trudy Corp. has acquired the catalog and e-commerce divisions of Musical Kidz LLC.

The purchase price was $350,000 cash, plus $200,000 in Trudy common stock. Under terms of the agreement, Trudy will make additional payments if Musical Kidz meets certain income goals during each of the next three years.

Leib Ostrow, president of Musical Kidz has joined Trudy, where he will be responsible for the firm’s direct to consumer sales division.

He will oversee Trudy’s Soundprints children’s music catalog and associated Web site, in addition to a new line of businesses. Trudy plans to launch a new line of digital audiobooks and sell other digital content for downloading.

The centerpiece of the deal is the Music for Little People catalog offering educational and multicultural music for children, which Ostrow founded in 1985. The catalog also offers musical instruments.

Trudy also acquired trademark rights for use in school and direct to consumer lines of businesses, plus customer and e-mail lists. The Music for Little People catalog has more than 32,000 customers from the last 12 months. Its average order is $58.

In addition to selling children’s music, Trudy also designs stuffed toy animals. It has licenses with the Smithsonian Institution, Sesame Workshop and the African Wildlife Foundation.