Galactech, a gaming startup with headquarters in Tunisia, has been bought by GBarena, an Egyptian e-sports platform. The acquisition will be funded by a stock swap for a price of about $15 million.
A “Stock swap” basically means the shares of the acquired company are swapped for shares of the target company at a predetermined swap ratio in a stock-for-stock exchange.
Galactech, is a gaming startup that was established in 2016. It has 200,000 active users and has raised about $1.5 million over three rounds from OTF gaming, OQAL angels, and the Tunisian Younis Family Office.
This acquisition is expected to help GBarena solidify its presence in Riyadh, Dubai, and Tunisia by utilizing Galactech’s existing business connections. Additionally, Galactech will be able to leverage GBarena’s existing user base and resources to expand its presence in the area, according to Houcem Maiza, co-CEO of GBarena and former founder and CEO of Galactech.
GBarena, is an e-sport platform founded in 2015 by Samer Wagdy and Mustafa Zaza with the aim of bringing together all e-sport players in the Middle East and North Africa (MENA) region and around the world. It is the first e-sport platform in the MENA region.
The acquisition is a step towards achieving GBarena’s goal of becoming the leading aggregator in MENA, serving all players in the industry, according to Wagdy, the CEO of GBarena.
GBarena is currently used by 650,000 people across 27 countries, including Saudi Arabia, Egypt, and the United Arab Emirates. The company has a reported value of $45 million, but the value of Galactech was not disclosed.