Warren Jacobs, the head honcho at ActiveWin, feels the moment is opportune for Nektan to assume complete ownership of Nektan Marketing Services.
This purchase from Betfred originator Fred Done and Jacobs transpires as Nektan aims to bolster its market standing. Jacobs and Done share a lengthy history of collaboration and recognized a chance to utilize their digital marketing proficiency with Nektan’s technological framework.
Nektan Marketing Services was initially conceived to provide a haven for the Kerching.com brand, which Done and Jacobs had procured from IGT. They joined forces with Nektan, who were then seeking to broaden their white label offerings.
This collaborative endeavor merged Nektan’s online gaming and mobile technology expertise with Done and Jacobs’ experience in digital acquisition, customer relations management, and client assistance. Currently, Jacobs opines that the company possesses sufficient maturity to function independently as a wholly-owned subsidiary of Nektan.
Honeydew, a marketing solutions firm, was in the midst of purchasing prominent brands such as Ruby Club. They were broadening their client management (CRM) offerings, even establishing a specialized CRM unit, for both their private label and exclusive clientele. It was within this framework that they approached ActiveWin regarding a buyout.
What prompted ActiveWin to agree to the sale to Honeydew at that specific juncture?
Like numerous prosperous enterprises, Honeydew sought to consolidate everything under their own banner. To propel their expansion, they desired enhanced control, supervision, and the capacity to further amplify their operations. Our pre-existing partnership positioned us as an appealing acquisition prospect.
Ultimately, we brokered an agreement valued at roughly £1.2 million. This sum encompasses the procurement of additional shares for £500,000 and a pledge from Honeydew to sustain utilization of ActiveWin’s services for the subsequent year. Given our initial outlay and the continuous development efforts, we deemed this a reasonable price, particularly as Honeydew demonstrably appreciated our input and aimed to expand upon the groundwork we had jointly laid.
Was this a singular model, or did it hold the potential for replication with other platforms and game developers?
We weren’t charting uncharted territory. Comparable models were already operational within the sector, such as Sea Monster and GameTech Turnkey Solutions (GTS). My prior experience included a tenure at Euro Associates, which was eventually acquired by GameTech and GTS for a remarkable €280 million. Therefore, rather than pioneering a revolutionary methodology, I was drawing inspiration from GameTech’s established triumph. It was a privilege to participate in a comparable endeavor, replicating that model on a reduced, more concentrated level.
In essence, from a commercial standpoint, this was a mutually advantageous and harmonious transaction.
This farewell extended beyond a simple handshake. Our collaboration will continue closely for a minimum of twelve months to guarantee a seamless handover. Both of us harbor immense pride in our achievements – establishing this company from its inception and securing a fantastic new partner within a mere twenty-four months. This truly highlights our capacity not only to produce results for 888, but also to manage such endeavors with swiftness and adaptability.
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