Ad tech unicorn Ve Interactive has been bought out of administration by its management team, the company confirmed.
Ve Interactive will trade under CEO Morten Tonnesen, brought in from early stage investors Aston Ventures, and managing director David Marrinan-Hayes, CEO of Fuel Ventures.
The buyout means Ve Interactive is “protected” for the time being, a spokesman said.
He added: “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."
According to The Financial Times, the company's executives discussed the terms of administration at a London court hearing on Tuesday.
Going into administration means handing control of the company to an independent third party who will try and rescue it, possibly through a restructure or sell-off. It can mean uncertainty for employees and the future of the business.
The buyout eases that uncertainty and comes after months of reported difficulties. The Financial Times reported the company's valuation dropped from £1.5 billion to £300 million in recent months, meaning it's no longer classified as a unicorn (where companies are worth more than £1 billion).
Founder and former CEO David Brown left the company last month, and was replaced by Tonnesen. Brown remains an "adviser" to Ve Interactive. The company has reportedly struggled to pay employees on time and repeatedly failed to hit its own revenue and profit targets. Stuart Chambers, former chairman of ARM, was due to join the company as chairman but, as news of its troubles emerged, never took the post.
Tonnesen said in a statement today: "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."
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