NEW YORK (Reuters) - Video-game retailer GameStop on Wednesday said it will acquire French video-game retailer Micromania from private equity fund L Capital for $700 million, including debt, to gain a presence in France.


GameStop, which has no stores in France, will gain Micromania's 332 locations in Europe's second-largest video game market. It said it will then have about 5,889 locations worldwide after the deal closes.

GameStop said it would fund the purchase through existing cash on hand, as well as funds from a credit facility, and a $150 million loan from Bank of America.

It expects the transaction to close in November, pending European Commission approval.

GameStop said it expects the deal to boost its fully diluted earnings for the fourth quarter and help it achieve earnings-per-share growth of 25 percent or more for fiscal 2009.

Citigroup acted as financial adviser to GameStop, and Lazard acted as financial advisers to Micromania's shareholders.

(Reporting by Euan Rocha in New York and Jessica Hall in Philadelphia; Editing by Maureen Bavdek)
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