Home Tech Egypt’s GBarena acquires Tunisia’s Galactech in a $15 million share swap deal : TechMoran

Egypt’s GBarena acquires Tunisia’s Galactech in a $15 million share swap deal : TechMoran

by kenya-tribune
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GBarena, the leading Middle East esports platform has acquired Tunisia-based Galactech, the gaming leader in North Africa alongside a significant presence in the GCC. The transaction expands GBArena’s footprint into the burgeoning North African market and signals their intentions to expand further including throughout the GCC.

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Valued at around $15 million, in the form of a share swap, it marks the second Tunisian acquisition this month following Instadeep’s whopping ₤562 million transactions by BioNTech. 

This marks a milestone transaction for GBarena in anticipation of closing its Series A later this year, with participation from investors in the US, Singapore and the Mena region.

This acquisition comes in alignment with GBArena’s planned expansion into GCC, including Saudi Arabia. With the entry into North Africa executed via this transaction, the focus will continue on further expansion in the Middle Eastern esports industry. GBArena will leverage the on-ground presence and capabilities that Galactech has in Riyadh, Dubai and Tunis. 

Galactech, founded in 2019, has been making waves in the North African gaming scene since its launch in 2019. With over 200,000 active users, they have become one of the most popular gaming platforms in North Africa and beyond in the region. 

GBarena CEO Samer Wagdy expressed his enthusiasm for this new venture: “Our goal has always been to provide our users with an unparalleled esports experience, no matter where they’re located in the world. With our acquisition of Galactech, we can now ensure that our users from North Africa will have access to identical features and content they have come to expect from us while providing them with extensive opportunities for growth and development within the esports community.” Wagdy also emphasised that this acquisition is one step forward towards achieving the company’s vision, which is to be the leading aggregator in MENA, serving all stakeholders in the industry.

“We’re very happy to be taking a step forward to fulfil the vision we started embarking on the journey with. Under GBArena’s ownership, Galactech will be able to tap into both GBArena’s established user base and resources to strengthen its presence in the region,” mentioned Houcem Maiza, Galactech’s CEO, who’ll be joining GBArena as Co-CEO. 

With today’s GenZ driving the region’s $3.56 billion industry, GBA’s youth-driven leadership is set in stone to build the engagement needed to foster communities across the Middle East and North Africa. Viewing today’s growth opportunity in markets like KSA and UAE, with injections of over $40 billion on infrastructural developments, a lot is expected to shape up in Mena’s gaming ecosystem in 2023. Upgrades to web3 & cloud gaming will be revolutionising the local experience very soon, reaching an expected 85.76 million gamers by 2025.

“We are thrilled to announce that with this transaction GBarena is joining forces with Galactech, creating a regional powerhouse in the thriving gaming industry,” said GBarena’s chairman, Ahmed Abou Doma. 

He added that “After careful analysis, we both realised it is a perfect complementary strategic fit for both companies. It will allow us to combine our strengths and resources maximising value creation and providing our gamers, fans and partners and all stakeholders with an unparalleled experience. We look forward to taking esports in the region to the next level and cementing our position as the regional leader in the industry.”

Shehata & Partners is acting as the legal advisor and Youssef Salem is acting as the financial advisor on the transaction.

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