Acquisition of games chain paves the way
Game Group has signed an unconditional agreement to acquire Australian video games retailer The Games Wizards for Aus$3.8m (£1.5m).

The deal will give the group a foothold in the Australian market and allow it to expand from its current base of 700 stores, concessions and franchises in seven European territories.

The Games Wizards is a retailer of video and pc games. Based in Sydney, it operates 14 company-owned stores and eight franchises in the Australian market.

In the financial year to June 30, The Games Wizards reported sales of Aus$19.7 million (£7.9 million), losses before interest and depreciation of Aus$1.6 million (£0.6 million) and, as at June 30, net assets of Aus$2.0 million (£800,000).

The group said in an announcement that Aus$1 million (£400,000) will be reinvested by management in The Games Wizards for at least 18 months following the acquisition.

Game group chief executive Martin Long said: 'Australia is an attractive games market with good growth dynamics. It offers the potential to develop our international business further.'

The acquisition of The Games Wizards provides the group with an established business and a low-cost entry into this important market. The specialist video games retail sector is already well established and, in terms of software revenue, Australasia is larger than Spain, Italy, Benelux and the Nordic region.'