Ad tech company Ve interactive narrowly avoided going into administration yesterday (April 26), thanks to a management buyout backed by existing shareholders and creditors.
The announcement from the group’s public relations team followed a Tuesday report by City A.M., which claimed that following an emergency bailout in March, “last ditch talks” to save the company had failed. A spokesperson for Ve Interactive responded, “The interim management team has successfully bought Ve Interactive out of administration which means the UK tech business is protected for the future.
“The company will now seamlessly continue to trade under the management of CEO Morten Tonnesen and Managing Director David Marrinan-Hayes.”
In March, the former “unicorn” – a company valued in excess of $1 billion – saw its value slashed from an estimated £1.5 million to just $300 million, following an emergency injection of £3 million by a number of new investors. CEO and founder David Brown stepped away from the helm after reports of late payments and rumoured failure to pay members of its 1000-strong staff count.
The emergency funding was led by a consortium including MyVoucherCodes founder Mark Pearson and Aston Ventures’ Doug Barrowman, who joined Ve’s executive board with the aim of tiding the company over until it once again reaches profitability.
Ve assured that yesterday’s acquisition allows it to safeguard “hundreds” of jobs, continue to develop its technology and grow its global market share; “The business has long been at the forefront of the industry and we now have the investment and backing to continue to build out our market-leading technologies,” said Tonnesen.
“I am especially pleased to announce the quality of Ve Interactive work and staff was once again recognised, with the company winning the Best Paid Social Campaign and Industry Rising Star awards at the Performance Marketing Awards.