Erlanger, Kentucky-based Ty’s Toy Box and Denver, Colorado’s All Aboard Toys have merged, creating the largest independent online toy destination for licensed character merch.

Ty Simpson, current CEO of Ty’s Toy Box, will be the CEO of the newly formed company, while All Aboard’s CEO Dave Carlson take the helm as chairman of the board.

Combined, the companies work with over 400 suppliers and more than 25 licensors/licensing agents and carry upwards of 10,000 unique licensed products, including toys, apparel, school supplies, home décor, DVDs, costumes, party supplies and video games. And the new entity is hoping to take a bigger slice of the estimated US$26 billion online character licensed product biz.

From his office this morning, Simpson said the merger will enable the development of multiple, farther-reaching retail programs for brands and licenses. Additionally, the companies will consolidate their buying teams to boost purchasing power. Both the Erlanger and Denver offices will continue to operate with their current staff and Simpson said he’ll be splitting his time between the two locations.

As for online presence, Simpson noted that both AllAboardToys.com and TysToyBox.com will be maintained, with each continuing to tailor product mix and marketing for their individual consumer bases.

Financial terms of the deal were not disclosed, but both companies are backed by financial partner, eonCapital.