19th Jun 2026 10:25
(Alliance News) - LBG Media PLC on Friday said it has acquired a 75% stake in creative agency Uncovered Holdings Ltd, as it also reported a new debt facility with HSBC UK Bank PLC.
The Manchester, England-based digital entertainment company owns social media accounts such as LADBible.
The acquisition has an initial GBP26.8 million cash consideration, noted LBG, with customary adjustments for working capital and cash and debt-like items. It added that it also has an earn out cash payment of up to GBP7.0 million tied to Uncovered's financial performance this year and next.
The terms also include put and call options over the remaining 25% stake.
Discussing the rationale behind the move, LBG said the buy provides it with a "diversified position as a social-first, Gen Z-native agency with expertise in short-form content, platform partnerships and emerging creative technologies, including production capabilities such as VFX and AI-enabled creative workflows."
LBG added that the deal will create a "market leading" content studio, possessing capacity to deliver campaigns at scale.
The company added that Uncovered's two co-founders will both remain with the business post completion, with Uncovered to continue to operate as an independent brand within the group.
LBG noted that in 2025, Uncovered generated GBP10.2 million in revenue and reported GBP2.7 million in adjusted earnings before interest, tax, depreciation and amortisation,
The company said the acquisition brings significant additional revenue and adjusted Ebitda contributions, and is anticipated to deliver double-digit earnings per share accretion in the first full-year post completion.
The acquisition is set to be funded through a combination of the company's existing cash resources, as well as a new debt facility.
LBG said it has inked a new debt facility with HSBC UK Bank worth up to GBP50.0 million, comprising a GBP35.0 million revolving credit facility and an accordion option of up to GBP15.0 million.
The company said it has drawn down around GBP17.7 million from the facilities to fund the day one consideration and associated fees, while using around GBP10 million from its cash reserves.
Shares in LBG Media were trading 4.4% higher at 28.20 pence on Friday morning in London.
"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," said LBG Media Chief Executive Solly Solomou.
By Christopher Ward, Alliance News reporter
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