Warren Jacobs, the top dog at ActiveWin, believes the moment is ripe to pass the torch of their marketing brainchild to Nektan.
The genesis of Nektan Marketing Services is an interesting tale. Imagine this: Jacobs and his business associate, the renowned Fred Done (yes, the Betfred magnate), are constantly seeking the next golden opportunity. They possessed an online casino, Kerching.com, in need of a new abode, and that’s when their paths intersected with Nektan’s then-COO, Matt Sunderland.
Events unfolded, and Sunderland recognized that these individuals were not passive observers – they were marketing virtuosos! Hence, the concept of a collaborative endeavor emerged. Fred and Jacobs, armed with their marketing prowess, joined forces with Nektan and their state-of-the-art online gaming technology.
They established Nektan Marketing Services, a 50/50 alliance where Nektan provided the platform and their proprietary brands, while Jacobs and Fred contributed their marketing acumen. Currently, it appears the time has come for Nektan to assume complete command and navigate this vessel toward even greater triumphs.
Honeydew, a marketing solutions firm, is on an acquisition spree, acquiring prominent brands such as Ruby Room. They are internalizing customer relations management (CRM) for both their private-label partners and their own labels, establishing a specialized unit for it.
What makes this the opportune moment to divest your interest to Honeydew?
Essentially, Honeydew, similar to many thriving enterprises, seeks to steer its own course. To propel further expansion, they aim to consolidate, granting them tighter control over their trajectory and greater capacity for growth.
We brokered an agreement valued at approximately £1.2 million. This encompasses their purchase of additional shares for £500,000, and their continued utilization of ActiveWin’s services for the subsequent year. Given our initial outlay and the ongoing refinement of our offering, we deem this a reasonable transaction. They evidently recognize the worth of what we have jointly constructed and intend to capitalize on it, which bodes well for us.
Can this framework be replicated with other platforms or gaming providers?
We haven’t devised a novel concept here. The market already possesses ready-made solutions like Sea Monster and GameTech. I witnessed this firsthand at EuroPartners, which GameTech procured for a substantial €280 million. My methodology drew inspiration from GameTech’s achievements, and I take pride in our accomplishments. It’s a validated model, albeit on a reduced scale.
Therefore, this sale is mutually beneficial? Unequivocally. It’s a prudent commercial decision.
Our journey wasn’t simply a parting of paths. Collaboration will continue for a minimum of twelve months. Remarkable achievements were accomplished, including the development and sale of the enterprise within a mere twenty-four months. This endeavor extended beyond demonstrating our capabilities to Paddy Power Betfair; it showcased our proficiency in driving such ventures toward triumph.
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