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PC gamer, WorthPlaying EIC, globe-trotting couch potato, patriot, '80s headbanger, movie watcher, music lover, foodie and man in black -- squirrel!

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Take-Two Sells Its Jack of All Games Distribution Business

by Rainier on Dec. 21, 2009 @ 2:45 p.m. PST

Take-Two Interactive has signed a definitive asset purchase agreement to sell its Jack of All Games distribution business to SYNNEX Corporation.

The transaction is subject to customary closing conditions and is expected to be valued at approximately $43.25 million, including $36.50 million in cash and up to an additional $6.75 million based on the achievement of certain items. It is expected to close in the first calendar quarter of 2010.

Under the agreement, SYNNEX will acquire the Jack of All Games business, which primarily distributes third party interactive entertainment software, hardware and accessories in North America. In addition, SYNNEX will serve as a distributor for Take-Two’s frontline and catalog titles in North America for Jack of All Games’ customers.

The sale of Jack of All Games is consistent with our stated intention to focus our resources on our core business strategy — delivering globally the most innovative and creative interactive entertainment products. We believe that Jack of All Games will prove to be highly complementary to SYNNEX’ successful distribution business and will benefit from SYNNEX’ expertise in this sector. We are pleased to continue to work with SYNNEX and Jack of All Games going forward,” said Ben Feder, Chief Executive Officer of Take-Two.

The acquisition of Jack of All Games provides SYNNEX with an established distribution footprint in video game hardware and software, a $20 billion segment in the consumer electronics industry. SYNNEX will retain the distribution rights for game consoles, video games, PC software, and accessories from elite video game manufacturers and publishers including Activision Blizzard, Electronic Arts, Microsoft, Nintendo, Sony, and Take-Two.

“Jack of All Games is a well-respected leader in this space. We are excited about the growth opportunities this acquisition brings, and the value we will create for our customers and vendors as we capture synergies with our core distribution business, particularly through our 2008 acquisition of New Age Electronics,” said Kevin Murai, President and Chief Executive Officer of SYNNEX Corporation. “Through this acquisition, SYNNEX will have a meaningful distribution presence in the video game market which extends our portfolio in the lifestyle segment. We anticipate the Jack of All Games business to be near-term accretive to our earnings. This business is also in alignment with our stringent ROIC growth targets.”

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