GAME acquires Gamestation in £74 million deal

News

Neil Long May 2 2007, 9:15am

Stunning takeover confirmed as GAME looks to dominate specialist sector.

The £74 million deal comes just a week after the High Street retailer released an impressive set of financials and spoke of significant expansion.

The two brands will be kept separate within the newly-expanded business as GAME looks to increase its appeal to the mainstream consumer, with Gamestation very much focused on the core gamer.

The total investment includes £300,000 which will be set aside for new stores, and an assumed working capital figure of £7.5 million.

The financial statement also reveals that Gamestation’s gross assets total £60.9 million.

Commenting on the acquisition, GAME chairman Peter Lewis said:

"We are delighted to bring Gamestation into our portfolio and believe it has a strong future within the group. The Gamestation business is one we have long admired and is complementary to our existing business in terms of both store portfolio and target customer."

"By investing in both brands we will further enhance the group's retail strategy while continuing to deliver and broaden our consumer reach. I am confident that this transaction will add considerable value to GAME and its shareholders over the coming years."

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