Administrators Move in on Netken
by Glenn Baird - January 10, 2020
Netken, the white label and content provider for UK casinos such as Sun Play and Play UK has sold part of its UK company to Grace Media (part of the Active Win group) for £200,000 in an effort to streamline the business.
Netken are an established white company in the UK and many of the casinos they work with come highly recommended by ThePogg.com.
The deal between Netken and Grace Media was overseen by 2 joint administrators. An initial fee of £50,000 was agreed with the rest to be negotiated after further talks.
Despite a turnover of £19.4 million in the 12 months leading up to June the 30th 2018, the period has still be described as loss making. The money from the sale will be used by the administrators to facilitate the administration process.
Just last week Netkan admitted that its white label company had struggled to turn a profit as a result of increased tax demands in the UK and the tougher verification controls that had been introduced earlier in the year. Netkan revealed that they are currently in the process of paying back a tax bill of £4.6 million. Having failed to enter their accounts on time Netkan has also been prohibited from trading on the London stock market.
Netkan has stated that their service will continue as usual, with the company now only able to receive royalties passed to them from Grace Media.
Nektan interim chief executive, Gary Shaw has this to say: “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, chief executive of Active Win Group added: “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.”
Gary Shaw went on to say: “I wish to place on record Nektan’s appreciation of the continued support from all of its employees, partners, suppliers and shareholders,”
“The group restructuring reaffirms the directors’ decision to focus on emerging opportunities in international markets both directly and through our established reseller relationships,” he explained. “The completion of our recent fundraising has provided the company with the financial strength to complete this restructuring, and with the support afforded by all stakeholders, the directors are confident of the future.
“The completion of the group restructuring allows Nektan to focus on its expanding international B2C and B2B business.”