The Manchester company that helped make Dragons' Den star Steven Bartlett his fortune is to be sold.
Social Chain was founded in 2014 by Mr Bartlett and his best friend Dominic McGregor after the pair dropped out of the University of Manchester.
The social media agency, which now also has offices in London and New York, is to be snapped up by social and digital media group Brave Bison for a deal worth at least £7.7m.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
Mr Bartlett, who also helms the popular Diary Of A CEO podcast, stepped down as CEO of Social Chain in 2020.
The business works with brands such as Amazon, TikTok, KFC and Apple Beats to create social media advertising campaigns and perform influencer marketing services and has 122 members of staff.
Mr Bartlett and Mr McGregor have not retained a stake in the company and will not financially benefit from the sale.
Social Chain had been a subsidiary of listed German ecommerce operation The Social Chain AG.
The new buyer said the business will help Brave Bison increase its revenues from social media advertising seven-fold to £15m for the year.
Brave Bison confirmed it will pay an initial consideration of £7.7m for the business but highlighted that this could increase if Social Chain meets certain earnings targets.
Oliver Green, chairman of Brave Bison, said: "We’ve long admired Social Chain, which we believe is among the world’s best regarded social media and influencer marketing brands, and we’re excited by the highly relevant clients it brings into our business.
"Social Chain has huge potential for growth within Brave Bison, taking the momentum Pete Metcalfe and the team have built up using Steven Bartlett’s platform.
"We’re delighted to be taking this big step forward as we continue to build a media, marketing and technology company for the new era."
Speaking to BusinessLive, Mr McGregor said: "The business is not what it used to be. When we left in 2020 we left it in a great position with great talent and unfortunately I think it has really suffered from the impact of Covid and the change in working environment.
"We were a business that was big on culture and community and I think that in the last three years it has diminished a little bit due to under investment and mismanagement.
"Agency businesses are focused on the people as that's the product that they ultimately sell. I think that during Covid when you could not get people together and meet clients to get ideas across businesses really suffer.
"I engaged in conversations about coming back to Social Chain as an owner but it needs investment and someone who can do that.
"It's a good deal for the new owner as they are buying a good brand but I think the investment Social Chain needs should come from an agency group and from those who have a bit more of an understanding of the market."
Also speaking to BusinessLive, Mr Bartlett said: "I resigned from Social Chain AG some three years ago but I've followed the group and its many agency businesses closely since.
"Really thrilled to see Social Chain's original agency business, that was born out of Manchester, moving to capable new hands at Brave Bison under the leadership of Oli and Theo.
"I wish them the best of luck."
READ NEXT:
