ActiveWins’ Chief Executive, Warren Jacobs, feels the timing is optimal for their collaboration with Nektan.
Gaming Intelligence periodical met with Jacobs to delve into the establishment of their branch, Nektan Marketing Services, and why this moment was opportune to shift complete authority to Nektan, subsequent to Nektan assuming full governance of the subsidiary from Betfred originator Fred Done and ActiveWin’s Managing Director, Warren Jacobs.
**What prompted the formation of Nektan Marketing Services?**
Jacobs detailed that he and Fred are business associates with endeavors spanning numerous enterprises, and Fred is enthusiastic about fledgling businesses and expansion. At that juncture, they were seeking a base for Kerching.com, a brand they (alongside several others) had procured from IGT, necessitating a fresh platform. They conferred with Matt Sunderland, then COO of Nektan, and swiftly migrated the brand onto their system.
Jacobs recollects a moment of clarity when Matt inquired if they were exclusive with Betfred, to which Jacobs responded negatively. Matt proceeded to ask if they engaged in marketing, which Jacobs also verified they did not. The concept of a shared venture arose, with Fred and Jacobs aligning with Nektan to amalgamate Nektan’s proficiency in online gaming technology and mobile with their mastery in digital acquisition, customer relationship management, and client assistance.
The objective was to establish Nektan Marketing Services, with Fred and Jacobs holding 50% ownership and Nektan possessing a stake. Nektan would furnish the white labels on the network in addition to their proprietary brands, while Fred and Jacobs would contribute their expertise and technological resources.
Honeycomb, a marketing solutions firm, was in the process of purchasing several prominent entities, including Diamond Club. They were also expanding to provide client management (CM) solutions for their private label partners and their own companies, even establishing a specialized CM division.
What prompted the decision to divest your ownership in the company to Honeycomb at this juncture?
As with many thriving enterprises, Honeycomb sought complete control over its trajectory. To secure additional funding, they desired direct management to achieve greater regulatory independence and expansion opportunities.
The final agreement we reached was approximately £1.2 million as they also procured other shares for £500,000. Furthermore, they will continue to utilize LiveWin’s services for the subsequent year. Given our initial investment and ongoing development efforts, we found it reasonable that they wished to continue benefiting from our collaborative achievements.
Could this framework be applicable to other platforms or entertainment providers?
We haven’t devised a novel concept. Analogous models, such as Seamonster and Gamemaster’s comprehensive solutions (CS), already exist within the market. My previous role was at Euroassociates, which was subsequently acquired by Gamemaster for €280 million and incorporated into CS. Therefore, I didn’t forge a new path; I simply drew inspiration from Gamemaster’s success, and it yielded favorable results. I take pride in my involvement. I merely replicated this model on a smaller, more measured scale.
Therefore, from a strategic business perspective, this transaction was entirely harmonious?
This transcended a simple commercial transaction. Our collaboration has been tight-knit throughout the preceding year, and both parties share a sense of accomplishment in what we’ve achieved. The rapid construction and sale of this enterprise within a mere two-year timeframe serves as a powerful testament to our team’s execution capabilities. It underscores our capacity to generate tangible outcomes, not solely for Betfred, but for any endeavor to which we dedicate ourselves.
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