7 Jan 2020 17:03
7 January 2020
NEKTAN PLC
("Nektan", the "Company" or the "Group")
Sale of the UK B2C business by the Administrators
Nektan plc (AIM: NKTN), the fast growing, award-winning international gaming technology platform and services provider, announces an update following the appointment of administrators to a Group subsidiary, Nektan (Gibraltar) Limited ("NGL"), as announced earlier today.
Following their appointment to NGL, the administrators have sold Nektan's UK B2C business to Grace Media Limited (the "buyer"), part of the Active Win Group, for total cash consideration of £200,000, payable as an initial payment of £50,000 with the balance payable subject to the UK B2C business meeting a series of agreed KPIs. For the year ended 30 June 2018, being its most recent audited accounts, Nektan's UK B2C business generated turnover of £19.4 million and was loss making. The sale proceeds will be used by the administrators in the course of running the administration of NGL.
The sale of the UK B2C business has no impact on the ongoing business of the Company and, as part of the sale of the UK B2C business, the Company has entered into a B2B partnership with the buyer to facilitate continued, uninterrupted delivery of services to the UK B2C business. As is the normal business model for a B2B partnership, Nektan will receive ongoing monthly royalties from the buyer.
Gary Shaw, Interim Chief Executive Officer of Nektan, said:
"For the Administrators of NGL to secure the sale of the UK B2C business to a group of the calibre of Active Win Group, in order to see the continued, uninterrupted delivery of the white label operation the Group has built over the years, is very reassuring to all stakeholders involved.
We look forward to working in partnership through the B2B relationship with the buyer as they take the business forward."
Warren Jacobs, CEO of Active Win Group, said:
"The opportunity to acquire the UK B2C business allows Active Win Group to expand further into the UK online casino market, furthering our growth in this market from being a white label operator ourselves, to working with the full complement of business partners established by Nektan in recent years.
We believe that with the right focus and attention, in a changing and dynamic market, that we will be able to deliver for all our stakeholders, including all of our newly acquired white label partners.
We look forward to working together with Nektan as our exclusive B2B partner as we grow the business in the coming years."
For further information on the Group, please contact:
Nektan Gary Shaw, Interim Chief Executive Officer Simon Hay, Chief Financial Officer Kam Bansil, IR | +44 203 478 2648
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Shore Capital (Nominated Adviser and Joint Broker) Tom Griffiths / David Coaten | +44 207 408 4050 |
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Novum Securities (Joint Broker) Jon Belliss / Colin Rowbury | +44 207 399 9425 |
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Further information on Nektan can be found on the Group's website at www.nektan.com.
About Nektan:
Nektan is a fast growing, international gaming technology and services provider, specialising in mobile casino. It licenses its proprietary technology to leading operators, including BetVictor.
Nektan's full end-to-end technology platform, Evolve, enables the management of the full customer experience and back-office operations, allowing operators on this platform to allow their partners to focus on marketing the product to their consumers.
The E-Lite platform is Nektan's B2B gaming content aggregator and bonusing platform that delivers a wide range of premium content from the world's leading game studios. It is an easily-integrated add on module for operators, giving them an array of options and flexibility on how they manage and distribute a breadth of premium gaming content across their networks.
Nektan has a material stake in US-based interactive gaming operator Rapid Games, which provides US land-based casinos with an in-venue mobile gaming solution. It allows operators to add mobile technology and content making products accessible to players across both cabinets and mobile devices inside casinos.
Headquartered in Gibraltar, Nektan is regulated by the Gibraltar Licensing Authority, the UK Gambling Commission and the Information Commissioners Office. As a socially responsible license holder, Nektan endeavours to deliver a safe, secure and robust player gaming experience.
Nektan plc was admitted to the AIM market of the London Stock Exchange in November 2014.