EB Buys Funco

Electronics Boutique has agreed to buy Funco. EB will offer $17.50 a share, or $110 million in cash, to pick up all outstanding shares of Funco Inc. The deal will merge EB's 628 mall locations with Funco's 400 strip mall and neighborhood stores to create the games industry's largest specialty retailer. Electronics Boutique hopes the acquisition will allow them to reach a more diverse clientele while expanding the company's used games business. The merged group plans to open an additional 125 EB outlets and 60 Funco stores by the end of the year; the merger will be completed early this spring.