Game Retailers to Merge

Electronics Boutique Holdings Corp., a video- and computer-game retailer, agreed to buy Funco Inc. for about $110 million, or $17.50 a share, to become the world’s largest specialty retailer of electronic games. Following the cash transaction, the combined company would have annual sales of almost $1 billion and about 7,000 employees. Funco sells new and used video games, along with related hardware and accessories, through 400 retail “FuncoLand” stores and its Web site. Electronics Boutique operates 628 stores in the U.S., Puerto Rico, Canada, Australia and South Korea. Funco had sales of about $206.7 million last year, while Electronics Boutique had revenue of about $728.7 million. Shares in Minneapolis-based Funco climbed $5 to $16.87, while Electronics Boutique rose 13 cents to close at $19.25, both on Nasdaq.