Brave Bison Group PLC on Friday said it will buy Social Chain Ltd for £7.7 million.

Social Chain is a Manchester-based social media and influencer marketing agency, founded in 2014 by Steven Bartlett. Bartlett is known for being an investor on the BBC reality television business show Dragons’ Den.

It is a non-core division of Berlin-based Social Chain AG, a German e-commerce firm.

Brave Bison, a London-based social and digital media company, expects the acquisition to improve its advertising revenue from social media seven-fold to £15 million, and an annual boost to 2023 revenue by over £40 million. It anticipates that Social Chain will report a revenue of £13.8 million and an adjusted earnings before interest, tax, depreciation and amortisation loss of £100,000 in 2022.

‘The acquisition will bring access to new, global customers, including Amazon, TikTok, Arla, KFC and Apple Beats. On a combined basis for the Enlarged Brave Bison, no single customer will represent more than 8% of net revenue, and the top 10 customers will represent less than 50% of net revenue,’ Brave Bison said.

On top of the £7.7 million Brave Bison pays initially, it will pay up to £9.5 million over three years following the acquisition, under Ebitda-based stretch performance targets.

Meanwhile, Brave Bison announced a vendor placing to raise £4.8 million, which will represent about 16% of the firm’s enlarged share capital on admission. Brothers Oliver Green, executive chair, and Theo Green, chief growth officer, have subscribed to £100,000 worth of placing shares, retaining a 19% stake in Brave Bison.

Looking ahead, Brave Bison said it expects to meet current market expectations for 2022, anticipating a 30% annual revenue growth.

Brave Bison shares rose 1.0% to 2.68 pence each on Friday morning in London.

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