UK-based video game company Game Digital (Game) has entered a collaboration agreement with sports goods retailer Sports Direct.
Under the agreement, Sports Direct will be acquiring a 50% stake in Game’s BELONG intellectual property for a £3.2m cash consideration.
Sports Direct also intends to enter concession agreements with Game to open their concession and gaming areas at selected Sports Direct locations.
Game Digital chief executive officer Martyn Gibbs said: “I am delighted that through the collaboration agreement, we are able to accelerate the implementation of a key element of our transformational strategy to move from a seller of physical products to providing gaming experiences.
“As more consumer focus and spend moves to experiences, we are well advanced in delivering unique, world-class gaming at both local and national level.
“Having launched the BELONG brand just over a year ago, we have now opened 19 arenas and are very encouraged by the popularity and performance of these locations.”
Sports Direct also entered an agreement with Game subsidiary Game Spain Holdings (GSHL), where Sports Direct has agreed to provide loan facilities up to £55m on an unsecured basis, which will be used by the company for purchasing facilities and improve the BELONG website.
Sports Direct chief financial officer Jon Kempster said: “We are very happy to partner with Game in building an increased presence in the esports market through the BELONG brand. This is a very good example of building a commercial relationship via our strategic investment approach.”