Partner Article

MBO at Ve Interactive safeguards ‘hundreds’ of jobs

London-headquartered tech firm Ve Interactive’s dramatic fall from grace continued after reports that the former ‘unicorn’ was entering administration.

According to the FT, Ve executives were in a Leeds court yesterday (Tuesday) to discuss the terms of it entering administration, but that the senior management team were ‘determined’ to strike a deal to save the tech startup.

The company’s travails began earlier this year when rumours that it had failed to pay staff on time were confirmed after it was forced to agree an emergency £3m investment round with Founder and Chief Executive, Michael J Brown, agreeing to step aside.

However, it has now been confirmed that the senior management team at the firm have completed a buyout to save the troubled firm, with Chief Executive Officer Morten Tonnesen and Managing Director David Marrinan-Hayes continuing to head up the company.

In a statement, a company spokesperson said: “The management buyout was backed by a consortium of existing significant shareholders and creditors who provided the funds to ensure the long term security of the business.

“The acquisition of Ve Interactive allows the group to safeguard hundreds of jobs, continue to develop its award-winning technology and grow its global market share.”

Aston Ventures, which provided the emergency cash injection, instated Morten Tonnesen as the company’s new Chief Executive and said it would be seeking immediate investment over the coming months, placing a £300m valuation on the company which had been touting itself as a £1.5bn firm just months ago.

Founded in 2009, the startup has attracted over £50m investment from 500 high net worth individuals and currently employs around 1,000 people across its 36 global offices.

Tonnesen added: “I am very excited to be leading the next chapter in Ve Interactive’s story. 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. 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.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →