Warren Jacobs, the head of ActiveWin, believed the moment was opportune to return control of their shared endeavor, Nektan Marketing Services, to Nektan.
He revealed to GI that the company was the offspring of his partnership with Betfred creator, Fred Done. The two were already collaborators in numerous enterprises, with Done possessing a knack for establishing businesses. At the time, they sought a new dwelling for Kerching.com, a brand they had procured and required a framework. Enter Matt Sunderland, then Nektan’s Chief Operating Officer. The rapport was immediate, and Kerching.com quickly found a new base on Nektan’s system. Sunderland questioned if they were exclusive to Betfred, to which Jacobs responded negatively. Jacobs reversed the inquiry, asking if Nektan managed promotion, which they did not. And so, the concept for a combined undertaking was conceived.
Merging Nektan’s proficiency in online gaming technology and mobile with their own skill in digital acquisition, customer relationship management, and client assistance, they established Nektan Marketing Services. The original framework had Fred and Jacobs possessing 50% with Nektan retaining the remainder. Nektan would furnish the white label platform and their own brands, while Jacobs and Fred contributed their expertise.
Nectar, a marketing solutions firm, sought to internalize some of its flagship brands, including Sapphire Lounge. Concurrently, they were developing a customer relationship management (CRM) platform for both their white label associates and their own brands. Similar to many expanding companies, Nectar desired tighter control over their operations. To accomplish this and attract additional investment, they intended to unite these services under their own banner. This would grant them increased autonomy and unlock greater possibilities for oversight and growth.
We settled on a transaction valued at approximately £1.2 million. This encompassed the purchase of additional shares for £500,000 and an arrangement for Nectar to continue utilizing ActiveWin’s services for the subsequent year. Given our investment and the ongoing development efforts, we considered this a reasonable agreement. Essentially, they sought to capitalize on the achievements we had jointly established, which was comprehensible.
We weren’t pioneering a new concept. The market already offered comprehensive solutions such as Dragonfish and Playtech’s PTS. My previous role was at Europartners, which Playtech acquired for €280 million, with PTS being a central element of that deal. Therefore, I wasn’t developing something entirely novel. I was drawing inspiration from Playtech’s triumph, a model I was fortunate to participate in, and replicating it on a smaller, more concentrated level.
This wasnt simply a cordial separation. Our collaboration will actually continue for the upcoming year. We hold immense pride in our swift accomplishments – establishing and selling the company within a mere two-year span is a remarkable feat. It demonstrates our capacity to deliver for entities like Betfair and underscores our proficiency in executing such endeavors with speed and efficacy.
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