NAVR ,,, Navarre Closes Funimation Purchase
Wednesday May 11, 7:02 pm ET
Navarre Buys Funimation for $100.4 Million Plus Stock, Sees Acquisition Boosting 2006 Sales
MINNEAPOLIS (AP) -- Navarre Corp., a supplier of computer software and DVDs to retailers, said Wednesday that it closed its purchase of Funimation Productions Ltd., a distributor of Japanese animation videos, and predicted that the acquisition will boost 2006 results.
ADVERTISEMENT
The company's shares rose 94 cents, or 11.3 percent, to $9.29 in after-hours trading.
Navarre paid $100.4 million in cash and 1.8 million shares for the Forth Worth, Texas-based distributor of titles including DragonBall Z, Yu Yu Hakusho and Fullmetal Alchemist. Funimation could also receive up to $17 million if it meets certain financial targets over five years.
Navarre said expenses related to the Funimation acquisition, regulatory compliance and buying out the remaining 20 percent stake of its Encore Software business will lead it to post a loss for its fiscal fourth quarter ended March 31.
Analysts surveyed by Thomson Financial currently expect Navarre to earn 9 cents per share in the January-March period. However, analysts' estimates usually exclude one-time items such as acquisition expenses.
For the year, Navarre said it expects revenue of $600 million, in line with analysts' estimates for $599.2 million in sales. For 2006, Navarre predicted that Funimation will boost sales to between $710 million and $720 million, leading to earnings before interest, taxes, depreciation and amortization ranging from $40 million to $45 million, or $1.26 to $1.42 per share. Analysts expect 2006 sales of $655.2 million.
Navarre funded the Funimation acquisition in part with a $165 million credit line supplied by GE Commercial Finance.
Email Story
Set News Alert
Print Story
Market Data 
Markets 
AI
