Navarre to Acquire FUNimation

Multimedia software publisher and distributor Navarre Corp. is set to acquire 100% of the general and limited partnership interests in FUNimation Prods. Ltd. and The FUNimation Store Ltd. Based in Fort Worth, Texas, FUNimation, is a leading anime home video distributor and licensor with a library that includes Dragonball Z, Dragonball GT, Yu Yu Hakusho, Case Closed and Fullmetal Alchemist. Navarre expects the transaction to close before May 15.

Navarre is acquiring the FUNimation partnership interests for approximately $100,500,000 in cash and issuing between 1,495,216 and 1,827,486 shares of Navarre common stock. In addition, the sellers could receive up to $17,000,000 in cash to be paid over five years if FUNimation achieves certain agreed-upon financial targets during a set time period.

In addition to the home video distribution of its proprietary content, FUNimation engages in third-party marketing, sales and distribution agreements with content providers including 4Kids Ent. Inc., Nelvana, Alliance Atlantis and WGBH. FUNimation has shown year-to-year growth, posting sales of $49.8 million, $63.7 million and $81.6 million for the years ended Dec. 31, 2001, 2002 and 2003, respectively. The company’s management team will apparently remain in place.