Warren Jacobs, the top dog at ActiveWin, believes the moment is ripe to strengthen their alliance with Nektan.
He shared his thoughts with Gaming Intelligence following Nektan’s announcement of assuming complete ownership of their subsidiary, Nektan Marketing Services. This move came after acquiring the shares of Betfred founder Fred Done and Jacobs himself.
So, how did Nektan Marketing Services come into existence?
Jacobs and Done have a long history as business associates with involvement in numerous ventures. Done has a passion for establishing businesses from scratch. At the time, they were seeking a suitable platform for Kerching.com, which they had acquired from IGT alongside other assets. Enter Matt Sunderland, Nektan’s Chief Operating Officer at the time. They connected, and the brand transitioned to Nektan’s platform.
Almost instantly, they all had the same realization. Sunderland inquired about their exclusivity with Betfred (which they weren’t), and Jacobs countered by asking if Nektan engaged in marketing (which they didn’t). And there it was! The concept of a joint venture was conceived.
They envisioned a winning combination by merging Nektan’s online gaming technology and mobile expertise with their own proficiency in digital acquisitions, customer relations, and support.
Thus, Nektan Marketing Services was established. Done and Jacobs divided 50% ownership, while Nektan also secured a stake. Nektan would manage the white label aspect and their own online brands, while Jacobs and Done contributed their marketing prowess.
Honeycomb, a marketing solutions firm, was in the process of purchasing several important labels like Ruby Club. They were also expanding to provide client management solutions for their private label partners and their own brands, going so far as to establish a dedicated client management division.
When they contacted us, their goal was to bring all operations under their own roof, as many thriving businesses do. This desire for increased autonomy and the possibility of more rapid expansion meant they needed to secure additional capital. Their proposal to acquire our stock was approximately £1.2 million. This encompassed a payment of £500,000 for supplementary shares and a pledge to utilize ActiveWin’s services for the subsequent year. Given our initial outlay and the continuous development efforts, we believed this was a reasonable sum, particularly since Honeycomb clearly recognized the worth of what we had jointly constructed.
This kind of acquisition is not unprecedented. Comparable structures already operate within the market, with SeaMonster and GameMaster Turnkey Solutions (GTS) serving as leading instances. I had observed this directly during my tenure at EuroPartners, which was bought by GameMaster for €280 million and incorporated into their GTS framework. Therefore, one could say I was gleaning inspiration from GameMaster’s achievements, replicating their blueprint on a reduced scale.
In summary, the transaction was agreeable and logical from a commercial standpoint.
This wasnt merely a cordial farewell. Our collaboration is far from concluded – we will continue our joint efforts for a minimum of twelve more months, and both parties are delighted with the advancements achieved. We established and divested this enterprise in a mere twenty-four months, a feat that fills us with immense pride. It demonstrates our capacity to execute such transactions with swiftness and proficiency, and underscores that our capabilities extend significantly beyond our work with Betfred.
admin