Merger Market Article June 2013 – Nektan set for inorganic international rollout; weighs IPO

06th November 2013 10:40 GMT

Nektan, the privately held Gibraltar-based e-gaming software supplier, will consider acquiring sector players to fuel US and Asia growth, according to commercial director David Da Silva.

The company is also mulling an initial public offering as it sets its sights on fresh capital raises following a recent GBP 5m financing round, Da Silva said.

“A combination of strategic acquisitions, joint ventures and organic growth” will broaden Nektan’s portfolio of programs and services. The company aims to develop its distribution network “into regulated gaming markets worldwide,” beginning with the US and Asia, he said. Da Silva declined to specify the Asian markets marked for entry.

On Wednesday, Nektan announced that it had completed its GBP 5m financing round, alongside the acquisition of UK mobile applications developer Mfuse for an unspecified sum. Vendors included venture capital firm Bestport. The deal combines Nektan’s client base with Mfuse’s programming expertise, Mfuse CEO Geoff Read told this news service.
To finance further expansion, Nektan “is contemplating an IPO in the near future,” Da Silva said, “to increase our transparency and access to capital markets.” London’s Alternative Investment Market would likely be the preferred bourse and a listing would, if pursued, would take place within two years, Da Silva added.

Nektan’s products include its flagship Sklots genre, which combines slot machine and skill gaming. Nektan also supplies casino games such as blackjack. Customers include US and European state lotteries. Nektan’s commercial partners include New York City-based lottery technology provider Scientific Games [SGMS: US], which distributes its products in select jurisdictions.