Nektan plc, which is an internationally recognised provider of mobile casino games, has recently announced that it will be selling three of its mobile gaming brands. These three brands are wholly owned by Nektan, and it has agreed to transfer them to Buckingham HMB Ltd. This deal between the two companies will also see a licencing agreement, which will be created as soon as the transaction goes through.
Nektan receives £1.7 million from Buckingham
It has been reported that Buckingham will pay Nektan an initial amount of £1.75 million pounds for the three mobile gaming brands. Another payment of £200 000 will be made to Nektan at a later stage. This deal will also see the two firms enter into a five-year licencing agreement. During this period, the three mobile gaming brands will operate using Nektan’s Evolve software platform, with a monthly royalty being paid to Nektan as well.
The three mobile gaming brands that Nektan is selling to Buckingham are Chomp Casino, Sapphire Rooms and Spin Princess. These three brands, along with their websites and customers are the assets that make up the sale. The three brands brought in £2 million in revenue during the fiscal year that ended at the end of June 2016.
Nektan’s CEO pleased with outcome
The CEO, Neigh Nissim, commented on how pleased he is with the results of the deal. Since he took over the company in July 2016, he’s been trying to streamline and optimise the business in Europe and the United States. The sale of these three brands is a step in the right direction, according to the CEO, who is also pleased that the deal led to a long-term agreement. All in all, it should help provide some additional capital for Nektan as well, which the firm will invest into its European business in an attempt to develop this even further. The money will also be invested into a joint venture within the United States called Respin Inc.
