As per the terms of a definitive agreement, Cool Holdings will acquire all of the outstanding capital stock of Simply Mac.
Financial details of the transaction have not been disclosed. The consideration for the acquisition will be “based in part on the value of inventories and other working capital at the date of closing.”
The deal is expected to complete by early August this year.
Dorsey & Whitney and Holland & Hart acted as the legal counsel to Cool Holdings and GameStop, respectively. The transaction saw no participation of financial advisors from Cool Holdings and GameStop.
Cool Holdings CEO and board of directors executive chair Mauricio Diaz said: “This transaction enables us to advance our growth strategy in the Americas as we move aggressively to reach our goal of 200 stores.
“Upon closing, we will have 59 stores with 46 in the US, six in Argentina and seven in the Dominican Republic, and a clear focus on North America, including potential opportunities in Canada. We are excited to work with the Simply Mac team, because we each bring synergistic strengths to the table that we believe will improve the operating efficiency and profitability of the combined company.
“We believe our direct relationships with third-party accessory manufacturers can help strengthen Simply Mac’s product offerings and gross margins. Simply Mac’s focus on Apple authorised service and smaller market locations could help us further expand our US presence and improve our existing store efficiencies and product-services mix.”