CEO for Factory Entertainment, Darren Epstein, said: "When we first heard the rights had been untied on this classic, retro brand we just knew it would be perfect to develop a range of products that would target multiple segments and all channels.
"We are truly excited to be involved in such a classic property which meant so much to so many people. We will roll out for 2010 plush, vinyl, die cast and other toy lines."
Caroline Mickler, head of licensing at Parthenon Entertainment, added: "We are absolutely delighted to be involved with Factory Entertainment. Their vision for The Magic Roundabout brand mirrors our own, which is to maximise each of the unique elements to ensure that Magic Roundabout truly becomes a mainstay of licensed merchandise in the UK."