Hedgehog lab buys Label Sessions to boost AI growth

Digital product consultancy hedgehog lab has acquired Edinburgh-based innovation network Label Sessions for an undisclosed sum, in a deal that brings together strategy, expert networks and digital product delivery under one roof.

The transaction creates a combined business that positions itself as a full-stack innovation consultancy. It links Label Sessions' structured innovation methodology and global expert community with hedgehog lab's experience in artificial intelligence implementation and product design and development.

Both companies target large organisations that want to move new ideas from early concept into live digital products. The combined offer focuses on sectors including finance, travel, retail and technology.

Label Sessions operates a network of more than 500 experts across disciplines such as cybersecurity, venture development and corporate innovation. The network provides organisations with access to specialist insight and senior practitioners on demand.

Hedgehog lab, which is backed by growth investor BGF, delivers digital products and AI-related projects for brands across the UK and internationally. It has worked with clients including Deliveroo, Under Armour, Aviva and AJ Bell.

Under the deal, Label Sessions' brand and proposition sit inside hedgehog lab's wider consultancy offer. The parties did not disclose financial terms.

Founders' growth

Label Sessions launched in 2023. Co-founders Nick Sherrard and Maxine Mackie had previously worked together at Market Gravity, Deloitte and the venture studio. The business is chaired by Helen Page, former Chief Marketing Officer of Virgin Money.

Since launch, Label Sessions has expanded its footprint across Europe, North America and Africa. It has worked with global brands including Google, Mastercard and Lululemon, and has focused on connecting corporate leaders with external experts and practitioners for structured innovation programmes.

Hedgehog lab was founded almost 20 years ago and is headquartered in Newcastle. It also has offices in London, Leeds, Edinburgh and Sofia. The consultancy reported its best-ever quarter earlier this year.

In 2023, hedgehog lab secured a GBP £6.3 million investment from BGF. The firm has reported significant growth over the past three years as demand for digital products and AI projects has risen among established brands.

'Ultimate sidekicks'

Sherrard will continue to lead Label Sessions within the enlarged group as Managing Director. He said the acquisition strengthens the offer for senior leaders who want support with both strategy and delivery.

"We want to be the ultimate sidekicks to leaders looking to make change happen. We've already shown that there's a different way to do strategy in the biggest brands; now we want to bring more big ideas to the market faster.

"By coming together with hedgehog lab, we create something unique. Clients will get access to global expertise on-demand, side-by-side with world-class development teams proven to get products launched before it's too late. As a combination, we can disrupt the market and, from our team's perspective, have fun doing it," said Sherrard.

Label Sessions has built its model around curated, time-limited engagements between corporate teams and external experts. The hedgehog lab deal adds in-house software engineering and AI specialists to that model.

Access to experts

Hedgehog lab Managing Director Malcolm Seagrave said the acquisition expands the firm's strategic and research offer alongside its existing delivery work.

"The acquisition of Label Sessions is a gamechanger for our business and clients, who will now gain access to a global network of more than 500 innovation experts, changemakers, and senior leaders operating at board and c-suite level. This enables us to offer innovation, global insights, and strategic thinking alongside hedgehog lab's delivery and build capability. It also provides an excellent opportunity for both of our teams' development as we continue to expand.

"We already know the two businesses have a fantastic cultural fit and we're excited about achieving our shared ambitions, offering something very unique to the market," said Seagrave.

Hedgehog lab and Label Sessions plan to target organisations that want to move faster from early-stage innovation to pilots and then to scalable digital products that use AI. The combined consultancy expects to pursue new domestic and international clients over the coming period.