In a significant move for the UK's technology sector, Newcastle-upon-Tyne digital product consultancy hedgehog lab has announced the acquisition of Edinburgh-based innovation support firm Label Sessions. The deal, confirmed on 19 December 2025, aims to forge a combined operation that offers a unique service to clients across finance, travel, retail, and technology.
A Strategic Union for Enhanced Innovation
The acquisition brings together hedgehog lab's established expertise in AI delivery, product design, and development with Label Sessions' distinctive methodology and its expansive network of more than 500 experts. The two companies, which have collaborated successfully for several years, stated that their new combined proposition will help organisations take ideas from initial concept through to pilot and, ultimately, to scalable, AI-enabled products.
All roles across both businesses will be retained as part of the agreement. hedgehog lab, headquartered in Newcastle, also has operations in London, Leeds, Edinburgh, and Sofia, Bulgaria. This acquisition marks another step in the firm's ambitious growth trajectory, which saw it secure investment from BGF and acquire York app developer Netsells in 2023. The company has set a target of reaching £50 million in turnover in the coming years.
Leadership Perspectives on the "Gamechanger" Deal
Malcolm Seagrave, Managing Director at hedgehog lab, described the acquisition as a "gamechanger". He emphasised that clients would now gain access to a global network of over 500 innovation experts and senior leaders. "This enables us to offer innovation, global insights and strategic thinking alongside hedgehog lab’s delivery and build capability," Seagrave said. He also highlighted the excellent cultural fit between the two teams and the opportunity for shared development.
Label Sessions was founded in 2023 by Nick Sherrard and Maxine Mackie and rapidly expanded to support major brands like Google, Mastercard, and Lululemon across Europe, North America, and Africa. Nick Sherrard, Managing Director of Label Sessions, commented on the union: "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 to market before it’s too late."
Implications for the UK Tech Landscape
This strategic acquisition strengthens the North East of England's position as a significant hub for digital and AI innovation, while also deepening connections with Scotland's thriving tech scene. The combined entity promises to deliver a powerful end-to-end service, merging high-level strategic consultancy with robust technical execution. The move is expected to enhance the UK's competitive edge in delivering complex, AI-driven digital products for a global client base, supporting the broader growth ambitions of both regions within the national technology sector.
