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(Sharecast News) - Digital advertising and technology service specialist Brave Bison Group announced the acquisition of Engage Digital Partners, a global sports marketing business, for up to £10.6m in cash and shares over three years on Monday.
The AIM-traded firm said the acquisition, set to complete in January, would combine Engage with Brave Bison's existing media network, creating an enlarged sports and entertainment division with a pro-forma turnover of £16m.
Engage, which works with prominent sports brands such as Formula 1, Real Madrid and New Zealand Rugby, operates with a headcount of 130 across offices in London, Dubai, India, and Australia.
The company's proprietary technology and digital strategies enable sports organisations to engage fans, drive ticket sales, and secure lucrative partnerships, Brave Bison explained.
For the year ending December, Engage was expected to generate £6.9m in turnover, though it anticipated an adjusted EBITDA loss of £0.3m.
Brave Bison said it planned to implement restructuring and integration measures to make Engage earnings accretive over the medium term.
The acquisition terms included an initial enterprise value of £2.1m, £2m in equity consideration subject to performance conditions, and up to £6.5m in contingent payments over three years, linked to Engage's performance.
Funding for the acquisition would come from Brave Bison's cash reserves.
In addition, Brave Bison provided a trading update, confirming that its performance for the second half was on track to meet market expectations of £3.6m in adjusted EBIT for the full year.
Post-acquisition, the company said it expected to report net cash of about £7m at the end of the 2024 financial year.
"Engage boasts an enviable client roster including Formula 1, ICC and Real Madrid, and deep expertise in sports media and digital content strategy," said executive chairman Oliver Green.
"This combination comes at a time when rights holders and sports federations are looking to maximise their IP, boost fan engagement and really drive commercial performance using a more data driven approach.
"We look forward to working with Gregg and Casey, as well as the best-in-class Engage team."
At 0914 GMT, shares in Brave Bison Group were up 3.45% at 2.25p.
Reporting by Josh White for Sharecast.com.
