In an update to the recent Ve Interactive saga, it has been revealed the ad tech company, once considered a $1bn ‘unicorn’, was sold to its management for just £2m.
In a statement, Ve Interactive investor Concha revealed the lowly amount paid to lift the company out of administration, stating it was ‘deeply disappointed’ by what has unfolded with Ve Interactive. Concha made a £4m cash investment in Ve Interactive last March, which represented a 0.43 per cent stake in the company.
“As part of a pre-packaged arrangement, the business and assets of Ve were sold to Rowchester Limited for a cash consideration of £2m, payable in instalments over a 12-month period ending April 2018. The directors of Rowchester Limited comprise members of the incoming Ve management consortium.”
The Rowchester Limited consortium includes the company’s new CEO Martin Tonnesen and COO David Marrinan-Hayes.
Ve Interactive began to run into trouble in March this year when it communicated its intention to secure £20m in funding to clear debts. It, however, failed to acquire these funds and as a result entered administration last month before being mentioned by the consortium.