Social Chain has been snapped up in a deal potentially worth more than £17 million.
The Manchester-founded influencer marketing agency went public in Germany via a merger with homewares retailer Lumaland in 2019.
Now Brave Bison Group plc, a social and digital media company, has acquired the entire issued share capital of Social Chain Limited for an initial consideration of £7.7 million and potential future payments of £9.5m.
These are to be paid over the coming three years and are dependent on stretch performance targets based on EBITDA.
Brave Bison intends to finance the initial consideration in part via a £4.75m share placing.
Founded in 2014 by Steven Bartlett and Dominic McGregor – now a Dragons’ Den entrepreneur and founder of VC Fearless Adventures respectively – Social Chain works with the likes of Amazon, TikTok, KFC and Apple Beats to create social media advertising campaigns and perform influencer marketing services.
The company has a total headcount of 122 with offices in Manchester, New York and London.
Brave Bison Social & Influencer and Social Chain will merge, with Social Chain CEO Pete Metcalfe taking responsibility for the enlarged social media advertising practice. The deal is expected to increase Brave Bison’s revenues from social media advertising seven-fold to £15m.
The consolidated business is expected to generate total revenues in excess of £40m for the financial year ending 31st December 2023.
Social Chain generated revenues of around £13.8m with an adjusted EBITDA loss of £100,000 in 2022, while over the last five years it has grown at a compound annual growth rate of 14%, approximately doubling revenues from £7.1m in 2017.
“We’ve long admired Social Chain, which we believe is among the world’s best regarded social media and influencer marketing brands, and we’re excited by the highly relevant clients it brings into our business,” said Brave Bison chair Oliver Green.
“Social Chain has huge potential for growth within Brave Bison, taking the momentum Pete and the team have built up using Steven Bartlett’s platform. We’re delighted to be taking this big step forward as we continue to build a media, marketing and technology company for the new era.”
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