Brave Bison has submitted a £43.1 million takeover bid for System1 despite opposition from the board of the marketing effectiveness research firm, which is also a publicly listed business.
The cash-and-share offer from Brave Bison values System1 at £43.1m, equivalent to 20x FY26 operating profit and a 65% premium to its share price prior to the announcement that it was considering the bid.
Brave Bison said it has consulted shareholders representing approximately 14% of System1’s issued share capital. Taken together with Brave Bison’s existing shareholding, this represents around 42% of System1. The deal would require 50% approval.
Brave Bison, parent company of SocialChain, said the enlarged group would generate net revenues of £79m and adjusted EBITDA of £14m.
It is System1’s largest shareholder and currently owns 28%, having made a strategic investment in March which included a share exchange with System1’s founder John Kearon (pictured), who now has an 8% shareholding in Brave Bison.
Unlike the initial mooted offer, the concrete revised offer includes a cash component and represents an increase of 10% on that original bid. System1’s board rejected both offers in principle as they ‘materially undervalue’ the firm.
System1 shareholders would own approximately 19% of the enlarged group if the deal goes through.