Former UK tech unicorn Ve Interactive has reportedly been rescued from administration following a management buyout.
A spokesman for the company told Tech City News that the interim management team had bought the firm out of administration, meaning it was now “protected for the future”.
The news comes after a Financial Times report said the firm, whose valuation was reportedly slashed from £1.5bn to £300m, had gone into administration after struggling to pay its workers on time.
The AdTech firm also made headlines last month after it surfaced that its former CEO and founder David Brown had stepped down and had been replaced by Morten Tonnesen. It’s believed Brown continues to act as an adviser.
“The company will now seamlessly continue to trade under the management of CEO Morten Tonnesen and managing director David Marrinan-Hayes.
“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,” added the spokesman.
Ve Interactive, which has repeatedly failed to hit targets for profit and revenue, is thought to employ almost 1000 people across its 36 different offices. The spokesman said the buyout would allow the group to “safeguard hundreds of jobs”.
According to investor documents seen by FT Alphaville, the company has not received any VC funding, having instead raised approximately £50m from about 500 individuals.
To date, Ve Interactive has made seven acquisitions with the latest one thought to have closed in December last year, after it paid £3m for advertising firm Crave & Lamb.
Stuart Chambers, former chairman of ARM Holdings (bought by Softbank) was due to take up a post as chairman at Ve Interactive but is believed to have rejected the position as reports about the firm’s trouble surfaced.