Nektan Sells Three Mobile Brands for Nearly £2 million
Published on by Andrew Mills
Popular mobile games provider Nektan plc announced yesterday that it has reached an agreement to sell three of its wholly-owned mobile casino brands to Buckingham HMB Ltd, for a total of £1.75 million.The transaction also results in a licensing agreement between the two. The initial amount of £1.75 million will be followed by a further £200,000 for the assets involved.
Licensing agreement
With this deal, comes a five-year agreement between the two involved parties which will see the three brands operating under Nektan’s Evolve platform.In a similar vein to other deals that Nektan has made, a monthly royalty will be paid to the provider in exchange for operation of the three brands.
The brands
The three sites that comprise the assets within the deal are Chomp Casino, Sapphire Rooms, and Spin Princess, their web domains, and their customer bases.In a statement yesterday, Nektan stated that the three brands had generated net gaming revenue of £2 million in the fiscal year ending June 30th, 2016.Nektan will continue posting net gaming revenue for the three sites along with its own, as they do for all other white-label partnerships.Speaking of the deal, Chief Executive of Nektan, Leigh Nissim, said that since he formally joined Nektan in July, they had commenced work on optimising business in Europe and the US.Nissim went on to explain that the deal with Buckingham HMB Ltd should be considered a positive step, because it will provide additional working capital, and simultaneously, Nektan would continue to benefit from revenue share.Nissim took over control of the company after Interim CEO Gary Shaw, officially on June 25th, although he formally joined towards the end of July.Nissim had previously worked as Commercial Director for International Gaming Technology’s Interactive Business.