ActiveWins’s head honcho, Warren Jacobs, dubbed it a “golden ticket” for both his organization and Nektan.
Jacobs chatted with *Gaming Intelligence* publication after the news broke that Nektan had assumed complete ownership of its subsidiary, Nektan Marketing Services, from Betfred founder Fred Done and ActiveWins’ Jacobs. He elaborated on the subsidiary’s beginnings and why the present was the opportune moment to pass the baton.
**What’s the backstory on Nektan Marketing Services?**
Fred and I are collaborators; we’re involved in several joint enterprises – Fred thrives on establishing and expanding businesses. We were seeking a new home for Kerching.com back then, a brand our group had procured from IGT, and it required a fresh platform. We connected with Matt Sunderland, Nektan’s COO at the time, and promptly migrated the brand onto their platform.
Out of the blue, we had an epiphany when he inquired: “Wait a minute, are you tied exclusively to Betfred?” I replied in the negative. I then asked: “Are you involved in marketing?” Matt indicated they weren’t. Thus, the concept arose for us to embark on a joint venture, where Fred and I would collaborate with Nektan, merging their prowess in online gaming technology and mobile with our expertise in digital acquisition, customer relationship management, and customer assistance.
The objective was to establish Nektan Marketing Services, with Fred and I holding a 50% ownership, and Nektan possessing a stake as well. They would furnish the white label on the network alongside their own brands, while we would contribute our knowledge and skillset.
Nectar, a marketing firm, recently purchased several prominent brands such as Sapphire Lounge. They established a specialized team to manage CRM for both their own brands and white label partners. Mirroring the strategies of many thriving companies, they aimed to consolidate all operations internally. To secure additional financing, they sought complete autonomy and enhanced regulatory and expansion prospects.
The transaction was valued at approximately £1.2 million, encompassing the acquisition of additional shares for £500,000. However, they will continue utilizing ActiveWin’s services for an additional year. Given our initial investment and ongoing enhancements, we deemed this agreeable, as they intend to leverage the foundation we jointly established.
This business approach is not unprecedented. Dragonfish already exists within the market, and Playtech offers a comprehensive solution known as PTS. Previously, I was employed at Europartners, which Playtech and PTS acquired for €280 million. I did not pioneer this concept; rather, I adapted Playtech’s successful model and replicated it on a smaller, more targeted level.
From a commercial standpoint, this sale was entirely harmonious.
This separation wasn’t your average friendly parting. We’re discussing an ongoing collaboration for a minimum of twelve more months, and we’re genuinely pleased with the progress made thus far. Even more remarkable is the fact that we constructed and sold this enterprise in a mere twenty-four months. It demonstrates that we’re not only equipped to produce results for a major player like Paddy Power Betfair but to do so with exceptional speed.