GameStop Corp. (NYSE: GME), a Grapevine, Texas-based multichannel video game, consumer electronics and wireless services retailer, is to sell its Spring Mobile business, which owns and operates 1,289 AT&T wireless stores, to Prime Communications, L.P., for $700m.
The deal, which excluded transaction fees and is subject to customary working capital and indebtedness adjustments., is expected to close in the fourth quarter of fiscal 2018, subject to customary regulatory approvals and closing conditions.
Proceeds from the sale may be used to reduce the company’s outstanding debt, fund share repurchases, reinvest in core video game and collectibles businesses to drive growth, or some combination of these options.
GameStop Corp., is a Fortune 500 company which operates over 7,100 stores across 14 countries. The company’s consumer product network also includes www.gamestop.com; Game Informer® magazine, a print and digital video game publication; and ThinkGeek, www.thinkgeek.com, a retailer for the global geek community featuring exclusive video game and pop culture products. Its technology brands segment includes over 1,300 Spring Mobile AT&T and Simply Mac stores. Spring Mobile, www.springmobile.com, sells all of AT&T’s products and services, including DIRECTV, devices and related accessories in select markets in the U.S. Simply Mac, www.simplymac.com, sells the full line of Apple products, including laptops, tablets, and smartphones and offers Apple certified warranty and repair services.
Perella Weinberg Partners LP is acting as financial advisor and Pepper Hamilton LLP is acting as legal counsel to GameStop in relation to the sale of Spring Mobile.
J.P. Morgan Securities LLC and SunTrust Robinson Humphrey, Inc. are acting as financial advisors and Gibson, Dunn & Crutcher LLP is acting as legal counsel to Prime Communications.