M+C Saatchi Bats Away $100M Performance Bid From Murdoch-Backed Brave Bison That ‘Fundamentally Undervalues’ Biz

M+C Saatchi Group has rejected an unsolicited £50 million (AU$100 million) bid for its Performance division from Brave Bison, saying it “fundamentally undervalues” the business.

Digital marketing firm Brave Bison, with offices in London, Manchester, Melbourne and Bangalore, submitted a cash-and-stock proposal to acquire M+C Performance, the arm of M+C which handles digital media planning and buying.

M+C said in a statement to investors its Performance arm forms a “core element” of its growth plans, the value of the proposed deal does not reflect the business’ trajectory and, as such, there were no deal discussions ongoing.

M+C Performance grew 5.4 per cent in the first half of this year, though these gains were not spread equally. It recorded “positive momentum” in UK-based specialist Issues business and Media division, and a -22.7 per cent dip in APAC.

B&T revealed earlier this year that M+C would be nixing its offline media planning and buying capability, and with it the Bohemia brand, to focus on digital media.

Brave Bison had intended to combine the division with its existing performance marketing operations to create one of the largest independent performance marketing companies outside the US, with market-leading presence in the UK and Asia-Pacific.

Brave Bison said in a note to investors that M+C’s Performance arm “accounts for the vast majority of net revenues” of the whole business, generated net revenue of £26.8 million and delivered growth of 8 per cent year-on-year.

“Should the acquisition complete, MCSP would be expected to contribute a minimum of £8 million in Adjusted EBITDA, increasing the enlarged Brave Bison pro-forma Adjusted EBITDA by over 80 per cent to £17 million,” it added.

M+C Saatchi Performance’s clients include Amazon and Meta. Brave Bison, which is backed by Rupert Murdoch, as well as former British Conservative Party treasurer Lord Ashcroft, lists Primark and Real Madrid among its clients.

Brave Bison has carried out a string of deals this year, including an influencer marketing business from Rupert Murdoch’s News UK for up to £7.6 million, which saw Mr Murdoch’s firm take a stake in the business.

Last year it bought the Social Chain agency founded by Dragons’ Den star Steven Bartlett, but failed in its attempt to buy rival Mission Group after making a £32.3 million swoop.

It also recently acquired Mark Ritson’s MiniMBA business for £19 million.