Game Digital continues investment in e-sports with Spanish acquisition

16th Feb 2016 13:19

(ShareCast News) - Video game retailer Game Digital has strengthened its focus on the growing area of e-sports events by agreeing the acquisition of Spain's SocialNAT for an undisclosed sum.SocialNAT, which will be purchased from the Social Electronica Sports Company SL (SESC) and certain other backers, has over 150,000 registered users on its platform and organises regular events such as those held during the 2015 Madrid Games Week.Spain is Game 's second market after the UK, with 275 shops in the country at its last year end, compared to 319 in the UK."The acquisition of SocialNAT will provide GAME with both a platform and an established audience to support the growth of its international eSports business, particularly in Spain, and allow the Group to offer a range of new experiences and services to its customers," Game said.The FTSE smallcap company entered the sPorts arena with the acquisition of gaming events and eSports organiser Multiplay in March last year.Pablo Crespo, Game's managing director for Spain, said: "Game is firmly committed to delivering the best experiences across all areas of the interactive entertainment and videogames business. ESports present one of the most exciting developments in the industry and the acquisition of SocialNAT will help to accelerate our plans in this area, particularly in Spain."Game issued a profit warning just before Christmas, but the computer games retailer reassured last month that trading was more stable than it had feared, with improving trends in both the UK and Spain.Broker Canaccord also flagged a potential dividend cut due to the group's investment requirements in eSports and need for a cash buffer to support supplier credit insuranceShares in the company were down 0.7% to 108.75p late on Tuesday afternoon, less than half their 12-month high.