Hedgehog lab buys Label Sessions to boost AI growth

Digital product consultancy hedgehog lab has acquired Label Sessions, an Edinburgh-based global innovation network, in a deal that brings together strategy, expert advisory services and product delivery under one business.

The transaction creates a combined consultancy that spans early-stage innovation work, AI-focused product development and scaled delivery. The two companies have worked together for several years before agreeing the deal. All roles at both organisations will transfer into the enlarged group.

Hedgehog lab, which is backed by growth investor BGF, specialises in AI delivery and digital product design and development. Label Sessions contributes a structured innovation methodology and a network of more than 500 experts, including senior industry leaders and board-level advisers.

Full-stack offering

The combined firm aims to work with organisations in sectors such as finance, travel, retail and technology. It plans to take client ideas from initial concept and pilot stages through to scalable products that use AI.

Hedgehog lab said the integration of Label Sessions' global expert network into its existing delivery operations will broaden its strategic advisory work. It also expects the transaction to create more international work across both customer bases.

The Newcastle-headquartered consultancy has offices in London, Leeds, Edinburgh and Sofia. It has operated for close to two decades and reported its strongest quarter earlier this year. Clients have included Deliveroo, Under Armour, Aviva and AJ Bell.

BGF invested in hedgehog lab in 2023. The firm said it has delivered significant growth during the past three years as demand for AI-driven digital products has increased across multiple industries.

Label Sessions launched in 2023 and focuses on connecting corporate innovation teams with experienced practitioners and strategists. The business operates across Europe, North America and Africa and has advised brands such as Google, Mastercard and Lululemon.

Leadership view

Malcolm Seagrave, Managing Director at hedgehog lab, said the acquisition would broaden the consultancy's reach and service range.

"This acquisition 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 who operate 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. This 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 and offer something very unique to the market," said Seagrave.

Label Sessions was founded by Managing Director Nick Sherrard and co-founder Maxine Mackie. Both previously worked at innovation specialist Market Gravity and later within Deloitte. Helen Page, former Chief Marketing Officer of Virgin Money, chairs the business.

Sherrard said the combined organisation would focus on working alongside senior leaders who are pursuing large-scale change.

"We want to be the ultimate sidekicks to leaders who want 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 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 before it's too late. That's a combination we can disrupt the market and, from our team's perspective, have fun doing it," said Sherrard.

The two leadership teams plan to use the enlarged expert network and delivery footprint in the UK and overseas for further growth across new sectors and geographies.