The Smarter Web Company (LSE: SWC | OTCQB: TSWCF | FRA: 3M8) is pleased to announce that on 20 February 2026 it acquired Squarebird Agency Ltd (“Squarebird”), a profitable Bristol-based web design and digital marketing agency, for a total net consideration of £1,690,000 (the “Acquisition”).
The consideration will be satisfied through a combination of newly issued equity and cash, comprising £675,000 to be paid through the issue of 1,682,033 new ordinary shares in The Smarter Web Company at an issue price of 40.13p (subject to customary lock-up provisions, as further detailed below) (the “Consideration Shares”), £270,000 in cash funded from the Company’s existing cash reserves, and £340,000 to be funded from Squarebird’s existing cash reserves. The balancing cash consideration of £405,000 will be paid over in three equal instalments on the first, second, and third anniversaries from the date of completion. The Acquisition is intended to strengthen the Company’s core web design business, enhance the group’s overall financial position, and forms part of the 10 Year Plan (“10 Year Plan”) announced via regulatory news at 07:00 on 28 April 2025 and available on the Company’s website.
Strategic Rationale:
Squarebird was selected following a targeted review of potential acquisition candidates, based on its consistent profitability, experienced management team and strong client relationships. The acquisition of Squarebird follows a disciplined process aligned with the Company’s previously announced acquisition strategy contained within the 10 Year Plan. Squarebird is a profitable, cash-generative business with strong margins and recurring revenue, meeting the Company’s criteria for acquiring operating companies with attractive economics and an approximate 3-to-4-year payback profile. The Acquisition enhances the Company’s operating platform, increasing scale and capability across the Company while also increasing recurring revenue and operating cash flow. Importantly, the additional profits are expected to support the Company overheads, enhancing financial resilience across market cycles. The consideration structure, combining equity and cash, aligns the Squarebird founders with the Company’s shareholders.
The Board believes this selective, value-driven acquisition strengthens core operations and financial sustainability.
Key Terms of the Acquisition:
- Total consideration: £1,690,000
- Payment structure: