Brave Bison, the leading digital advertising business, has unveiled plans to acquire Engage Digital Partners Limited, the prominent sports marketing company, in a deal valued at up to £10.6 million. The transaction, expected to close in early January 2025, will be paid through a mix of cash and shares over a three-year period.
This acquisition will significantly bolster Brave Bison’s sports and entertainment division by integrating Engage’s robust portfolio of clients, which includes major sports entities such as Formula 1, ICC, Real Madrid, and New Zealand Rugby. Founded in 2012 after a management buyout from Endemol Sport, Engage operates with a global footprint, employing 130 staff members across offices in London, Dubai, India, and Australia. The company delivers 24/7 service capabilities to its high-profile clients.
The merger will align Engage’s operations with Brave Bison’s existing sports network, which currently boasts partnerships with the PGA Tour, Ryder Cup, and US Open. The combined entity is projected to achieve a pro-forma turnover of £16 million, positioning the expanded division as a key player in the sports media landscape.
The acquisition terms outline an initial enterprise value of £2.1 million, equity consideration of £2.0 million, and performance-based contingent payments of up to £6.5 million over three years. The equity consideration is contingent upon Brave Bison’s share price achieving at least 3p per share and meeting specified financial milestones.
While Engage is forecasted to generate £6.9 million in turnover with an adjusted EBITDA loss of £0.3 million for the year ending December 2024, Brave Bison anticipates the acquisition will become earnings accretive in the medium term. The deal underscores Brave Bison’s strategic commitment to expanding its influence in the sports and entertainment sectors.
In tandem with the acquisition announcement, Brave Bison revealed its trading performance aligns with market expectations. The company projects FY24 Adjusted EBIT of £3.6 million and expects net cash of £7.0 million post-acquisition, signalling robust financial health and strategic growth potential.