Penguin has become the exclusive global publisher for each new property developed by Mind Candy for the next three years.
Both companies work together to build "original, cross-platform brands around the world".
Penguin is already the global publisher for Moshi Monsters. Over 1.4 million Moshi Monsters books have been sold in the UK alone since July 2010.
The publisher has also produced the successful Buster’s Lost Moshlings app.
Eric Huang, Penguin Children's New Business and IP Acquisitions Director, will also be leaving Penguin to join Mind Candy as Director of Development.
Rich Haines and Juliet Matthews, Acquisitions Manager and Publisher of Licensing respectively at Penguin Children's - which also publishes brands such as Angry Birds and Skylanders - will work closely with Huang in his new role.
Tom Weldon, CEO of Penguin, said: “Our relationship with Mind Candy has been an enormous success, and this new partnership extends and deepens the way we work together.
"One of Penguin’s key strategic themes is building tomorrow’s brands today, and Mind Candy is at the forefront of doing just that. Eric has been instrumental in helping Penguin become a new kind of publisher, and we wish him well in his new position, where we will continue to collaborate on brilliant ideas and great storytelling."
Michael Acton Smith,CEO of Mind Candy, added: "We’re delighted to announce our exclusive partnership with Penguin. They’ve done an incredible job on Moshi to date and we’re excited to see what the future holds with our new IP.
"Eric Huang will be a fantastic addition to the Mind Candy team and we’re looking forward to working with him."
Smith recently told ToyNews that Mind Candy's upcoming brands will launch on tablets and smartphones before potentially making the jump to toys and other consumer products.
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