Leading European specialist retailer of PC and video games, The GAME Group plc, has announced that it has acquired Games Station Limited from Blockbuster UK for £74m. 

Gamestation is a specialist UK PC and video games retailer employing over 1,800 staff in 217 stores across the UK, and serves a highly complementary customer base to that of the core GAME format. 

GAME intends to retain the Gamestation brand alongside its existing GAME format, and is confident that the enlarged business will be able to expand the group's offer and improve consumer choice on the high street. 

Gamestation's existing concessions operated within Blockbuster stores in the UK will not form part of the transaction and will cease to operate under the Gamestation brand prior to 30 June 2007. The senior management of Gamestation will remain with the enlarged GAME group. 

The acquisition follows other complementary acquisitions made during the past three years in France (Addon and Maxi Livres), Australia (Games Wizards), Norway (Spiderman) and online (gameplay.co.uk). 

In the year ended 31 December 2006, Gamestation reported revenues of £203.5m, EBITDA of £6.5m and profit before taxation of £2.1m. As at 31 December 2006, the gross assets of the business were £60.9m. 

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."