Acquisition

RNS Number : 9426J

GB Group PLC

07 July 2011

 

      7 July 2011 

GB GROUP PLC

("GB Group")

Acquisition of Data Discoveries Holdings Ltd ("Data Discoveries")

GB Group Plc, the identity management specialist, is delighted to announce the acquisition of the entire issued share capital of Data Discoveries for a total consideration of £0.61m. 

Data Discoveries is a provider of trace software to Government and the debt collection industry which enables organisations to trace and make contact with individuals through a better understanding of their identity and behaviour. 

The activities of Data Discoveries are similar to those of GB Group's existing ID Trace business, which has shown significant growth over the last two years. The acquisition will create a combined business with an enhanced customer and sector base, able to address the market more effectively and efficiently at a time when the demand for tracing software and services is growing fast. It is the view of the management of both GB Group and DataDiscoveries that the combined business will be the market leader in this developing market.

The acquisition furthers GB Group's strategy to be the UK's leader in Identity Management software and services and to accelerate growth both organically and through acquisition.

In the unaudited accounts for the year to 30 June 2011, Data Discoveries' revenue was £1.7m, profit before tax was broadly breakeven and it had net assets of approximately £0.2m.

The consideration of £0.61 million comprises of £0.55m of cash and £0.06m by way of the issue of 150,943 ordinary 2.5p shares in GB Group ("Acquisition Shares") (plus a further amount for the net assets based on the completion accounts). An application will be made for the Acquisition Shares to be admitted to trading on AIM with effect from 15 July 2011.

Excluding acquisition and integration costs, the acquisition is expected to be earnings enhancing in the first year as part of the GB Group.

Richard Law, GB Group Chief Executive, commented:

"This acquisition of Data Discoveries is an excellent strategic fit which will further strengthen GB Group's ID Trace business by diversifying its customer base, broadening its addressable markets and increasing its geographical coverage within the UK.

GB Group has achieved pleasing growth in this sector in recent years as a result of its ability to better understand individuals and their behaviour which continues to form a core part of GB Group's strategy to be the UK's leader in Identity Management."

For further information please contact:

GB Group plc                                                                              01244 657333

 Richard Law, Chief Executive

 Dave Wilson, Finance Director

 Peel Hunt (Nominated Adviser and Broker)                        020 7418 8900

 Richard Kauffer

 Daniel Harris

 Weber Shandwick Financial                                                  020 7067 0700

 Nick Oborne

 John Moriarty                      

Website:                                                                                   www.gb.co.uk

Notes to Editors

About GB Group plc

The most successful organisations recognise the value of understanding your individual identity - who you are, what you need and what you like. GB Group combines this concept of identity with technology to create an environment of trust so that organisations can connect, communicate and transact with consumers safely, responsibly and profitably. We call this Identity Management.

GB Group has four complementary Identity Management offerings:

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·      ID Verification - which provides the ability to verify consumers' identities remotely  without the physical 
presentation of documentation, in order to combat ID fraud, money laundering and restrict access to age-
related purchases and gambling

·      ID Customer Registration - which includes software and services for quick and accurate customer registration and validation of records

·      ID Marketing Services - which provides database services so our clients can better understand, target and retain their customers and offers accurate and up-to-dateidentity information for their contact strategies

·      ID Tracing Services - which provides the largest and most accurate picture of the UK's population and properties in order to locate and contact the right individual, first time

This enables our clients to make informed business decisions based on a thorough knowledge of consumer identity and behaviour, leading to more effective communication and interaction with the customer.

GB Group is listed on the London Stock Exchange (GBG). For more information, please visit GB Group's website: www.gb.co.uk.

GB Group - because identity matters(R)

 

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