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Highlights
- Brave Bison acquires Engage Digital Partners, a global sports marketing company, for up to £10.6 million.
- The acquisition strengthens Brave Bison’s sports and entertainment division, adding top-tier sports brands like Formula 1 and Real Madrid.
- Brave Bison expects to meet its FY24 market forecast of £3.6 million Adjusted EBIT and project net cash of £7.0 million by year-end.
Brave Bison (LSE:BBSN), a digital advertising and technology services company, has announced the acquisition of Engage Digital Partners Limited ("Engage"), a global sports marketing company known for its work with high-profile sports brands including Formula 1, ICC, Real Madrid, and New Zealand Rugby. The deal, valued at up to £10.6 million, is set to significantly enhance Brave Bison's sports and entertainment division, which already includes notable partners such as the PGA Tour, Ryder Cup, US Open, and Le Mans.
The acquisition combines Engage’s expertise in digital strategy, content creation, and fan engagement with Brave Bison’s existing network, creating a more robust offering across sports including football, cricket, motorsports, tennis, golf, e-sports, and rugby. This expanded division is projected to generate £16 million in pro-forma turnover.
The acquisition consideration consists of an initial £2.1 million enterprise value, £2.0 million in equity, and contingent consideration of up to £6.5 million over the next three years, subject to performance conditions. The equity consideration will vest if Brave Bison achieves a minimum share price of 3 pence per share, financial performance targets, and a three-year holding period. The contingent payments are structured to be self-funding, with payments made only after Brave Bison recoups its original investment.
Engage, established in 2012 by Gregg Oldfield following a management buyout from Endemol Sport, operates with a global workforce of 130 people across offices in London, Dubai, India, and Australia. The company’s strategic focus on proprietary technology, digital content, and personalized fan engagement has made it a valued partner for sports federations and rights holders seeking to drive audience growth and increase commercial partnerships.
For the 12 months ending 31 December 2024, Engage is expected to generate £6.9 million in turnover, though it will report an adjusted EBITDA loss of £0.3 million. Brave Bison anticipates that, following a restructuring and integration program, Engage will become earnings accretive over the medium term.
The acquisition is expected to complete in early January 2025, with funding provided from Brave Bison’s cash resources. Additionally, trading for the second half of 2024 has been in line with expectations, and the company is on track to meet its market forecast of approximately £3.6 million in Adjusted EBIT for FY24. Following the deal, Brave Bison expects to report net cash of approximately £7.0 million at the end of the year.
