LBG Media acquires Betches in $24m deal

The AIM-traded firm said Betches Media, a US-based media brand established by women, specialises in creating and publishing digital content catering to women.

It said the acquisition, valued at an initial $24m in cash, would be financed from its existing cash reserves, with the potential for an additional $30m in cash payments contingent on Betches meeting specified revenue and profitability targets through 2026.

The board said the acquisition of Betches represented a strategic step towards broadening its reach within the US - the world's largest advertising market.

It said Betches Media's digital publishing expertise, with a focus on millennial and Gen Z women, complemented LBG's existing portfolio.

The acquisition was expected to make a substantial contribution to the company's revenue and adjusted EBITDA, while the acquisition was being fully funded from LBG Media's existing financial resources.

Betches would bring the incorporation of new brands into LBG Media's portfolio, expected to expand both LBG's existing 100 million US following and its overall audience among women.

Finally, the directors said the acquisition would open up clear opportunities for cross-selling within LBG Media's expanded portfolio.

They said the synergies between the two entities would provide avenues for leveraging each other's strengths to maximise growth and value.

"The joining of LBG Media and Betches is an incredibly exciting milestone in the group's story, progressing a key element of the strategy that we set out at the time of IPO, and since" said chief executive officer, Solly Solomou.

"This deal brings together two highly successful, growth-focused businesses with complementary brands and skills, similar cultures and amazing teams, to create a world-class proposition.

"The opportunity for the enlarged group is exciting, as we will be better positioned to capitalise on the significant US audience and advertising market."

At 0941 BST, shares in LBG Media were up 4.15% at 91.76p.

Reporting by Josh White for Sharecast.com.