GameStop to buy France's Micromania for $700 million

Video game retail chain GameStop announced Wednesday that it has agreed to purchase France-based Micromania for $700 million in cash from a private equity fund.

The acquisition is part of GameStop's efforts to expand in Europe, increasing its store count in that region to 1,077, according to a Bloomberg report. Texas-based GameStop currently has no stores located in France, while Micromania has 332 store locations in the country.

Under the deal, the company will purchase Micromania's outstanding shares from private equity fund L Capital, which gained control of the video game retailer in 2005, according to Bloomberg.

The deal, which will still need approval by the European Commission, is expected to close in November.