GameStop Corporation, world's largest video game retailer, has agreed to buy French video game retailer Micromania for $700 million in cash, to expand its presence in the European market.

Under the deal, the company will purchase the Micromania's outstanding shares from private equity fund L Capital.

The company intends to fund acquisition by cash on hand from an existing revolving credit facility, as well as by a $150 million committed term loan from Bank of America.

GameStop claims that the acquisition of Micromania, which has presence at 332 locations in France, will offer the company, a wide network to cater for French customers. The Texas-based videogame seller already operates in several markets overseas, but doesn't have any stores in France.

With this latest deal, the company will extend its reach to 1077 European stores and along with this, company’s total store count will rise to 5,889 locations.
The company expects the deal to close in November, which awaits clearance by the European Commission.