Namco Bandai has acquired a 34 per cent stake in Infogrames’ European and Asian distribution operations, in turn creating a new ‘standalone entity’ that will handle the distribution of both businesses’ boxed product as well as other publishers’ titles.

The newly-formed group will boast Infogrames’ existing global distribution network, and is set to go on the hunt for more deals to bolster its business above and beyond exclusively handling Infogrames and Namco Bandai titles.

Infogrames has also stated that it will continue to “invest in, develop and publish” boxed and online games as one of its core activities.

Under the terms of the deal, Infogrames will have the option to sell its remaining 66 per cent of the newly-formed operation to Namco Bandai in 2012. The deal is expected to be complete by February 2009.

The proposed value of the new distribution firm will be €95 million on a ‘cash free, debt free’ basis, including a €15m earn out mechanism based on the audited results of the new company for FY 2008/09.

“I am delighted that this transaction strengthens our outstanding partnership with Namco Bandai, one of the industry’s greatest creators and publishers of video games, and is a significant development in Infogrames’ reinvention,” said CEO of Infogrames David Gardner.

“The agreement will give Infogrames a guaranteed and strengthened product portfolio and provides us additional means to invest in new product development for packaged and online markets.”