Infograme Entertainment has announced under the terms of a strategic partnership with Namco Bandai. they have exercised to sell the remaining 66% of its stack in Distibution Partners to Namco Bandai. The stake includes the joint venture sales, marketing and retail distribution that serves the video game industry in Europe, Asia, Australia.

Infogrames will receive cash payment of the transaction upon closing, which is expected to occur within the 4 next months, after the approval by the competent antitrust authorities - which management does not expect to be withheld. In addition, as from the closing of the transaction until the end of the five-year period starting from the date of the closing of the transaction, Distribution Partners will benefit from exclusive physical packaged-goods distribution rights for video games produced by Infogrames in Europe, Asian countries (excluding Japan), Africa, Middle eastern countries, Central and South America, Australia and New Zealand.

Atari Europe decided to exercise the put option, based on a €60 million enterprise value of Distribution Partners, on a “cash free, debt free basis”, under the terms of the strategic partnership.

This transaction generates a number of key strategic and immediate commercial benefits for Infogrames:

• Funds received upon completion of this transaction will provide Infogrames/Atari with further means to invest in game development, studio and publishing operations internally and with leading external development partners;
• Working capital required to service the needs of distribution operations will be sharply reduced;
• An acceleration towards the fast-growing online game segment of the business;
• Atari will continue to benefit from Distribution Partners’ strong and efficient distribution network for a five year period in Europe, Asian countries (excluding Japan), Africa, Middle Eastern countries, Central and South America, Australia and New Zealand.
• Atari’s management and operations will now be 100% dedicated to establishing the company as a leading online game company;

After the recently announced acquisition of leading MMO publisher Cryptic Studios, Inc., this transaction is a significant step towards the transformation of the company into an Online-centric game company, with continued access to a world-class global retail distribution organization.