Brave Bison Group (BBSN) Trading Update & M&A Announcement summary

Acquisition details

• Acquiring Engage Digital Partners for up to £10.6 million in cash and shares over three years.

• Engage brings a client base including Formula 1, ICC, Real Madrid, and New Zealand Rugby.

• The deal includes an initial £2.1m enterprise value, £2.0m equity, and up to £6.5m contingent on performance.

• Equity vests only if share price exceeds 3p and financial targets are met, with a three-year holding period.

• Completion expected in early January 2025, funded from existing cash resources.

Strategic rationale and integration

• Combination creates an enlarged Sports & Entertainment division with £16m pro-forma turnover.

• Engage's 130 staff and global offices expand Brave Bison's geographic reach and service delivery.

• Engage expected to be earnings accretive over the medium term after restructuring and integration.

• Enhanced offering across football, cricket, motorsports, tennis, golf, e-sports, and rugby.

• Focus on data-driven fan engagement and commercial performance for rights holders.

Financial and trading update

• FY24 trading in line with expectations; forecasted £3.6m Adjusted EBIT.

• Engage expected to generate £6.9m turnover and £0.3m adjusted EBITDA loss in 2024.

• Post-acquisition, net cash expected to be approximately £7.0m at FY24 year-end.