Mobile gaming solutions provider Nektan has moved to increase its working capital, selling three of its gaming brands to Buckingham HMB.
The deal, worth an initial £1.75m in cash with a further £200,000 expected to follow shortly, will see Buckingham take ownership of Nektan’s Chomp Casino, Spin Princess and Sapphire Rooms brands.
Nektan and Buckingham have simultaneously entered into a five-year licensing agreement to allow for the continued operation of the brands under Nektan’s white label Evolve platform, for which Buckingham will pay a monthly royalty.
Nektan confirmed its intention to use the proceeds of the deal to develop its business in Europe and its US joint venture, ReSpin inc.
Leigh Nissim, CEO of Nektan, said: “Since formally joining the company on 25 July, we have begun to refine our structure to bring tighter focus and to optimise our businesses in Europe and the US.
“As part of this process, the transfer of those brand assets coupled with the long term white label licensing agreement is a positive step forward for the business by providing additional working capital for the group while still benefiting from a share of the ongoing revenues of the brands.”