GameStop To Acquire Geeknet Inc. - Quick Facts

(RTTNews) - GameStop Corp. (GME), a family of specialty retail brands and Geeknet, Inc. (GKNT), the parent company of ThinkGeek and ThinkGeek Solutions, announced they have entered into a definitive agreement under which GameStop will acquire all of the outstanding shares of Geeknet's common stock for $20.00 per share in cash.

The transaction has been approved by the board of directors of both companies and will be completed by means of a tender offer. The transaction has a total equity value of about $140 million, including $37 million of cash and cash equivalents as of March 31, 2015.

Geeknet also announced that it had terminated its previously announced merger agreement with Hot Topic, Inc. Following discussion with both GameStop and Hot Topic, the Board of Directors of Geeknet determined that the GameStop transaction represented a superior proposal.

Geeknet stated that it will pay Hot Topic a termination fee pursuant to the Hot Topic agreement, for which GameStop has agreed to reimburse Geeknet.

The acquisition is expected to close by the end of GameStop's second quarter 2015. Geeknet stockholders representing approximately 21% of outstanding shares have committed to participate in the tender offer.