Digital advertising firm Brave Bison has announced plans to acquire sports marketing company Engage Digital Partners Limited for up to £10.6 million, payable in cash and shares over three years.
The deal, expected to be completed in early January 2025, will significantly expand Brave Bison’s sports and entertainment division.
Engage, established in 2012 following a management buyout from Endemol Sport, works with major sports brands, including Formula 1, ICC, Real Madrid, and New Zealand Rugby. The company employs 130 people across offices in London, Dubai, India, and Australia and provides round-the-clock service delivery.
The merger will combine Engage’s operations with Brave Bison’s existing sports network, which includes partnerships with PGA Tour, Ryder Cup, and US Open. The enlarged sports and entertainment division is expected to generate £16 million in pro-forma turnover.
The acquisition terms include an initial enterprise value of £2.1 million, equity consideration of £2.0 million, and potential contingent payments of up to £6.5 million over three years, subject to performance conditions. The equity portion is tied to Brave Bison achieving a minimum share price of 3p per share and meeting financial targets.
While Engage is projected to generate £6.9 million in turnover with an adjusted EBITDA loss of £0.3 million for the year ending December 2024, the acquisition is expected to become earnings accretive for Brave Bison in the medium term.
Alongside news of the acquisition, Brave Bison reported trading in line with market expectations, with anticipated FY24 Adjusted EBIT of £3.6 million and projected net cash of £7.0 million following the acquisition.