This acquisition supports GBArena’s plans to expand into the GCC, including Saudi Arabia, with further expansion plans in the Middle Eastern esports industry. GBarena will leverage the on-ground presence and capabilities that Galactech has in Riyadh, Dubai, and Tunisia.
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.
Founded in 2016 by Mustafa Zaza and Bishoy Mesdary, GBarena aims to create an online gaming community connecting gamers with tournament organisers and providing them with a platform where they can manage their tournaments through fully automated processes, while Galactech was founded by Houcem Maiza and Houssem Zouaghi and has been making waves in the North African gaming scene since its launch in2019 with over 200,000 active users.
In October 2021, GBarena raised a six-figure pre-Series A funding round, to fuel its expansion plans.
“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.