Toy and board game company Hasbro is to buy the Canadian film studio Entertainment One, known as eOne.

The all-cash transaction would value the firm at approximately US$4bn (€3.6bn).

Hasbro is the company behind brands such as My Little Pony, Transformers, Play-doh, Monopoly and Power Rangers.

eOne specialises in the development, acquisition, production, financing, distribution and sales of entertainment across film, television and music production.

It produces children's cartoons including 'Peppa Pig', 'PJ Masks' and the under-development series 'Ricky Zoom'.

However, the company's Canadian TV and film operations will continue as a distinct Canadian-controlled business within the combined firm.

A woman reacts to a Peppa Pig mascot during the Global Mobile Internet Conference (GMIC) in Beijing, China | Image: Ng Han Guan/AP/Press Association Images

The company says: "eOne's Canadian presence is an important base for creative talent and best-in-class studio capabilities, significantly expanding Hasbro's Canadian presence and positioning eOne for ongoing success in Canada, including in relation to its robust pipeline of television and film projects.

"The transaction is structured to ensure that eOne's Canadian operations will continue to meet applicable Canadian control regulatory requirements in relation to television and film production companies, to the continued benefit of the Canadian television and film production industry".

While top eOne executives have agreed to join the Hasbro team.

The global organisation will have a presence in London, Los Angeles, Toronto, New York, Hong Kong, Melbourne and Shanghai.

Hasbro Monopoly board game are seen in a store in New York | Image: Richard B Levine/SIPA USA/PA Images

Brian Goldner, Hasbro chairman and chief executive officer, says: "The acquisition of eOne adds beloved story-led global family brands that deliver strong operating returns to Hasbro's portfolio and provides a pipeline of new brand creation driven by family-oriented storytelling, which will now include Hasbro's IP.

"In addition, Hasbro will leverage eOne's immersive entertainment capabilities to bring our portfolio of brands that have appeal to gamers, fans and families to all screens globally and realize full franchise economics across our blueprint strategy for shareholders."

Allan Leighton, eOne's chairman of the board, added: "On behalf of the board of eOne, I am very pleased by this exciting development, which is a testament to eOne management's vision, leadership and solid execution.

"This transaction creates significant, immediate value for our shareholders as it recognizes the strength of our future-facing business model".

While Darren Throop, chief executive officer of eOne, said: "There's a strong cultural fit between our two companies - eOne's stated mission is to unlock the power and value of creativity which aligns with Hasbro's corporate objectives."