GameStop has acquired French retail chain Micromania, the biggest specialty video game retailer in France.  Micromania currently operates 332 stores in France with annual revenues in excess of $704 million; GameStop, on the other hand, has no stores in the country despite being quite prevalent in the rest of Europe.

The acquisition has an approximate value of $700 million in cash, including the assumption of debt.  GameStop is funding the transaction on its own through cash reserves, revolving credit facility, and a $150 million committed term loan from Bank of America. 

The European Commission still has to clear the transaction after investigating monopoly concerns.  Investigations are expected to end by November, and Pierre Cuilleret will remain president director general of Micromania until that time.

"When the opportunity arose to purchase Micromania, and after meeting the executives who lead the company, we became convinced that expanding into Europe's second largest video game market with Micromania's management team and GameStop's diverse experience was a great combination for profitable growth," explained GameStop executive chairman R. Richard Fontaine.

"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," added CEO Daniel A. DeMatteo.

Less competition is a good thing for the US game retail chain, especially with digital download gradually attaining foothold.  GameStop is, of course, admitting nothing in that matter by feigning confidence.