European video game retailer Game Group (LSE: GMG) said it had acquired Games Station Limited from Blockbuster UK for a total cash consideration of £74 million.
Gamestation is a video games retailer employing over 1,800 staff in 217 stores across the UK. Game Group said it planned to keep the Gamestation brand, and that it expected the acquisition would be earnings enhancing and deliver synergies of approximately £7 million per annum by the second full year post acquisition. In the year ended 31 December 2006, Gamestation generated earnings before interest, tax, depreciation and amortisation of £6.5 million on revenues of £203.5 million.
Shares in Game Group rose 6% to 163.5p.