Nektan offloads loss-making UK B2C business
B2C arm sold to ActiveWin as part of Gibraltar-based business administration process
Embattled online gaming company Nektan has sold its UK B2C business to Betfred-backed affiliate marketing firm ActiveWin in a £200,000 all-cash deal.
The arrangement includes an initial payment of £50,000, with the total balance payable if the UK B2C business meets a series of agreed KPIs. Nektan has confirmed the sale proceeds will be used by administrators in the administration of the Nektan Gibraltar Limited business.
In addition, Nektan has entered into a B2B partnership with ActiveWin to facilitate “continued, uninterrupted delivery of services to the UK B2C business”, with the company receiving ongoing monthly royalties from ActiveWin.
Gary Shaw, Nektan interim CEO, said the sale would allow for the “continued uninterrupted delivery” of the Group’s white-label operation, a move which would reassure stakeholders.
“We look forward to working in partnership through the B2B relationship with the buyer as they take the business forward,” Shaw added.
Speaking to EGR, ActiveWin CEO Warren Jacobs said the acquisition of Nektan’s B2C business was an opportunity for ActiveWin to optimise and build a “much stronger and more efficient business” within the UK market.
“We want to build relationships with the white labels that are on the platform and help them generate more revenue and increase acquisitions and have a better bottom-line profit in a heavily compliant market,” Jacobs added.
ActiveWin has confirmed it plans to integrate the Nektan B2C business immediately and will contact all existing suppliers and partners. It has also said it will conduct a full review of the existing accounts in operation under the business.
ActiveWin is part-owned by Betfred CEO Fred Done and operates as an affiliate for many of the company’s bingo, sports betting and slots brands.
Nektan’s Gibraltar-based subsidiary entered administration earlier this week following the temporary suspension of its shares on the UK Alternative Investment Market earlier this month.
The move was in response to Netkan failing to publish its 2019 accounts, amid what it called “significant restructuring” of the Group’s operations.
In its 2018 accounts, the Nektan UK B2C business generated turnover of £19.4m and was a loss-making enterprise.