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Social Chain sold for £7.7million

Social Chain

It’s emerged this morning that Brave Bison Group has entered into an agreement to acquire Social Chain for £7.7m.

Social Chain was co-founded by Dominic McGregor and Dragon’s Den entrepreneur Steven Bartlett, and employs 122 people in Manchester, New York and London.

London-based Brave Bison says the deal would increase its revenues from social media advertising “seven-fold” to £15m. It would also increase its expected revenues for the year to more than £40m.

The acquisition would see Brave Bison Social & Influencer and Social Chain merge, with Social Chain CEO Pete Metcalfe taking responsibility for the enlarged social media advertising practice.

Members of the senior management team will become option holders in Brave Bison, with up to 15m share options issued over the next 3 years, depending on performance.

“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,” explained Oliver Green , Chairman of Brave Bison.

“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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Brave Bison is listed on the AIM Stock Exchange and it said it would be using an oversubscribed vendor placing to raise £4.75m for the purchase.

There would be “an additional contingent consideration” of up to £9.5m, payable over 3 years following completion of the acquisition. That is related to performance targets.

According to a statement from Brave Bison, Social Chain is expected to generate revenues of £13.8m and an adjusted EBITDA loss of £0.1m in the year ending 31 December 2022.

Social Chain is a subsidiary of The Social Chain AG, which is a listed German ecommerce company. Social Chain represents less than 10% of The Social Chain AG’s revenues.

As part of the deal, Brave Bison has acquired all intellectual property associated with the Social Chain brand.

In addition to bringing in clients, such as Apple Beats, the acquisition will give Brave Bison its first offices in America and Manchester.

“This strategic acquisition strengthens our position in the social media advertising space and gives Brave Bison a foundational office in the US,” added Theo Green , Chief Growth Officer of Brave Bison.

“My brother and I are delighted to be participating in this placing, and we remain on the lookout for opportunities in the digital media, digital advertising and technology services ecosystems.”

This morning co-founder, Steven Bartlett stated:

“Social Chain was my first big success in business. It’s great to see two young entrepreneurial brothers building Brave Bison with the same energy Social Chain brings to the table. They should be a great fit”.

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