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Video game retailer GameStop has announced plans to purchase rival retailer EB Games for $1.44 billion. The company will be renamed as GameStop Corp. and will become the leading video game retailer in the United States with over 3,200 stores located nationwide.
The agreement also adds to the international retail reach of GameStop Corp., with 600 international stores located throughout Australia, Canada, Denmark, Germany, Ireland, Italy, New Zealand, Norway and Sweden.
"This merger, which is a very positive step for GameStop, will enable us to enter new international markets and allow us to compete more effectively in the highly competitive U.S. video game industry," R. Richard Fontaine, GameStop's Chairman and Chief Executive Officer, said. "We are merging these two companies from a position of strength. Each organization is performing very well now, and we will be able to do more together by extending geographic reach, improving customer service, and continuing our aggressive store growth plans."
The board of directors at Electronics Boutique have unanimously approved the transaction.
"Our focus at Electronics Boutique has been to be a leading global retailer of video games and by combining our company with GameStop, we are taking further strides towards reaching that goal," Jeffrey Griffiths, Electronics Boutique's President and Chief Executive Officer, said. "Moreover, this transaction makes a tremendous amount of sense from an operational, cultural, and synergistic perspective. We will now be in an even better position to broaden our reach and generate further efficiencies for our business and our customers.
The merger is subject to approval by shareholders of GameStop and Electronics Boutique.