LBG Media agrees to acquire 75pc stake in British creative agency

19th Jun 2026 08:04

(Sharecast News) - Social entertainment business LBG Media said on Friday that it has agreed to acquire 75% of a UK‑based creative agency Uncovered Holdings for an initial sum of £26.8m.

LBG said the acquisition, which comes with a potential earn‑out of up to £7m based on performance through 2026-27, also includes put and call options over the remaining 25%, exercisable at a multiple of 9x adjusted underlying earnings for 2028-30.

The AIM-listed firm said the deal was aligned with its strategy to grow predictable, scalable direct revenues and strengthen its creative and production capabilities, with the combination of both businesses set to create a larger content studio able to service bigger briefs and longer‑term partnerships.

LBG stated acquisition will be funded through existing cash and a new debt facility, while the deal was expected to be double‑digit earnigns per share accretive in the first full year as it provides shareholders with an attractive risk‑adjusted return through immediate earnings enhancement and a stronger strategic revenue mix.

Uncovered generated £10.2m of revenue and £2.7m of adjusted underlying earnings in 2025, an 80% year‑on‑year increase, and was expected to deliver at least 50% revenue growth in 2026 while maintaining similar margins.

Chief executive Solly Solomou said: "At LBG Media we've always believed the future belongs to businesses that understand audiences and culture. Chris, Catherine and the team at Uncovered have built one of the leading social-first agencies, and by combining their creative expertise with our audience insight, publishing capabilities and global reach, we're creating an even stronger proposition for brands looking to earn attention, build relevance with youth audiences, and win in a social-first world.

"This acquisition marks another important step in our strategy to build the world's leading social entertainment business for young adults. We are delighted to welcome the team to the LBG Media family and look forward to working together to unlock the opportunities ahead."

As of 1025 BST, LBG shares were up 4.63% at 28.25p.

Reporting by Iain Gilbert at Sharecast.com

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