Brave Bison (AIM:BBSN) has outlined a possible £43.1 million cash-and-share offer for System1 Group PLC (AIM:SYS1), seeking to combine the businesses into a marketing data and technology group generating £79 million of pro-forma net revenue.
The indicative terms offer System1 investors 68p in cash and 2.7553 new Brave Bison (AIM:BBSN) shares for each share held. Based on Brave Bison’s 20-day volume-weighted average price of 94p, the proposal values System1 shares at around 327p.
That represents a 65% premium to System1’s undisturbed closing price of 198p on 27 February and a 7% premium to its 305p close on 10 July. The valuation equates to 20.4 times System1’s £2.11 million operating profit for the year to March 2026.
Brave Bison already owns 28% of System1 and is proposing to acquire the remaining 72%. System1 shareholders would hold about 19% of the enlarged company, which would generate roughly £14 million of pro-forma adjusted EBITDA before potential savings from duplicated corporate, property and technology costs.
The cash portion would be funded through a credit facility under advanced negotiation, with no equity fundraising required.
