Internationally recognized mobile casino games provider Nektan plc announced today that it has agreed to transfer the assets of three of its wholly-owned mobile gaming brands to Buckingham HMB Ltd. The transaction simultaneously results in a licensing agreement between the involved parties.
Buckingham will pay the gaming provider the initial amount of £1.75 million. Another £200,000 payment will be made shortly for the above-mentioned assets. With this, the two parties will enter into a five-year licensing agreement, under which the three brands will be operated under Nektan’s Evolve software platform. Similarly to other such white-label agreements the gaming provider has formerly entered into, a monthly royalty will be paid in exchange for the operation of the three mobile casinos.
The in-house developed brands – Chomp Casino, Sapphire Rooms, and Spin Princess, together with their web domains and customer bases, comprise the assets sale. The three mobile casinos generated net gaming revenue of £2 million for the fiscal year ended June 30, 2016, Nektan said in a statement from earlier today.
The provider will continue posting their net gaming revenue within its own net gaming revenue as it does with other such white-label partnerships. Nektan also notified that it would recognize a profit on the sale in the ongoing financial year, with it being equal to the consideration it has received.
Nektan Chief Executive Leigh Nissim commented that since he formally joined the company towards the end of July, they have begun working on optimizing their business in both Europe and the US. The executive further explained that the sale of the three brand assets as well as the long-term white-label agreement coming with it should be considered a positive step for the company as this would provide additional working capital. At the same time, Nektan will continue benefiting from the revenue share it would keep on receiving from the three mobile casinos.
Mr. Nissim took over the company from Interim CEO Gary Shaw on July 25, 2016. The company’s new Chief Executive had formerly worked as Commercial Director for International Gaming Technology’s Interactive Business.
Nektan said that it would invest the proceeds of the assets transfer for further developing its Europe-focused business as well as US Joint Venture – Respin Inc.
