Navarre Corp. is acquiring home video distributor FUNimation. Navarre will pay $100.5 million in cash and issue between 1.49 million and 1.83 million shares of its common stock in the transaction, whi

Navarre Corp. is acquiring home video distributor FUNimation. Navarre will pay $100.5 million in cash and issue between 1.49 million and 1.83 million shares of its common stock in the transaction, which is expected to close before May 15.

Navarre chairman/CEO Eric Paulson says in a statement that the acquisition is part of his company's strategy to "utilize the strong underlying asset of our distribution business to support and assist in the growth of our higher-margin publishing business."

Similarly, FUNimation president Gen Fukunaga says that "utilizing Navarre's capital structure and distribution efficiencies will aid FUNimation in its ongoing business."

Fort Worth, Texas-based FUNimation distributes animé and children's video titles, including "Dragonball Z," "Yu Yu Hakusho" and "Fullmetal Alchemist." The company also has marketing, sales and distribution agreements with content providers 4Kids Entertainment, Nelvana, Alliance Atlantis and WGBH, and holds master licenses for non-video products such as toys and trading cards.

For the year 2003, FUNimation had net sales of $81.6 million and pre-tax net income of $30.5 million, according to Navarre.

Navarre stock was trading the day after the announcement up nearly 5% at $19.14.