The owner of LadBible has acquired a US-based media brand in a deal worth up to $54m.
Manchester-based LBG Media has bought Betches Media for an initial cash consideration of $24m with a further $30m payable in instalments, subject to the acquired firm achieving certain revenue and profitability targets to 2026. The company is a digital publisher focused on millennial and Gen Z women.
In a statement issued to the London Stock Exchange, LBG Media said the deal would provide a "significant additional revenue and adjusted EBITDA contribution". Betches was established in New York in 2011 by three female co-founders, who are all remaining with the business post-acquisition.
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In 2022, Betches generated over $14.6m in revenue (unaudited) and delivered $3.9m adjusted EBITDA. The company will remain a stand-alone business, but will work with LBG Media's existing US team.
The deal comes after BusinessLive reported that LBG Media had cut its losses while revenue increased during the first half of its financial year.
LBG Media chief executive Solly Solomou said: "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. 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.
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"The opportunity for the enlarged group is exciting, as we will be better positioned to capitalise on the significant US audience and advertising market. I look forward to welcoming the Betches team to LBG Media."
Betches CEO Aleen Dreksler added: "It's a very exciting day in the history of Betches as we begin this next chapter with LBG Media, a highly influential media owner with massive global reach. Betches has been on the cutting edge of women's media and disrupting internet culture in the US for over a decade, and this acquisition will enable us to achieve new heights in our global footprint, new original programming, brand partners, and much more.
"The synergy between LBG and Betches is unmatched, with our similar origin stories and passion for connecting with millennial and Gen Z audiences, making this a natural next step for our company. We remain committed to our ambition to be the number one humour platform for women globally and are confident that the legacy we have built for Betches will continue to thrive with the newfound support of LBG Media and its leadership."