Take-Two Interactive has signed a deal to sell its Jack of All Games distribution business to Synnex Corporation, a business process services company that deals in the distribution of IT systems and software.
An investor relations note explains that the transaction is expected to be valued at around $43.25 million, which includes $36.50 million in cash and up to a further $6.75 million based on the achievement of certain items. The deal is expected to close in the first calendar quarter of 2010.
Under terms of the agreement, Synnex acquires the Jack of All Games business, which primarily distributes third party software, hardware and accessories in North America. Synnex will also serve as a distributor for Take-Two’s frontline and catalog titles in North America for Jack of All Games’ customers.
Ben Feder, chief executive officer of Take-Two said, “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.”