GameStop Buys Micromania for $700 Mln
October 01, 2008 | by Geoff Duncan
Video game seller GameStop is getting set to invade Europe, buying French game retailer Micromania for some $700 million.
Video game seller GameStop has announced it is buying French gaming retailer Micromania for some $700 million. Micromania is currently held by the private equity fund L Capital—so that's who's actually getting the money—but the acquisition gives GameStop a serious foothold in Europe. GameStop currently has no in France, and will gain some 332 locations in the country as part of the deal. By acquiring Micromania, GameStop will be able to boost its presence in Europe to over 1,000 stores; worldwide, GameStop will operate almost 6,000 locations.
"The transaction is a reflection of our belief that the European video game market is growing and will be an important part of GameStop's worldwide growth," said GameStop CEO Daniel A. DeMatteo, in a statement.
GameStop is funding the deal through cash on-hand, as well as credit and a $150 million loan from Bank of America. Pending European Commission approval, the transaction should close in November 2008.
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