Acquisition

RNS Number : 2290L

GB Group PLC

28 July 2011

 



Embargoed until 7.00 a.m.

28 July 2011

GB GROUP PLC

("GB Group")

Acquisition of Advanced Checking Services Ltd

GB Group Plc, the Identity Management specialist, is delighted to announce the acquisition of the entire issued share capital of Advanced Checking ServicesLtd ("ACS") for an initial consideration of £0.42 million.

ACS is a business which undertakes electronic checking of driving licences to enable organisations to comply with their obligations under health & safety and corporate manslaughter legislation.  Its service uses the information from the DVLA to confirm a driver's licence status including endorsements and entitlement to drive.  ACS also has a driving licence checking application for the insurance sector aimed at the prevention of fraudulent claims. 

The acquisition will:

·     broaden GB Group's product portfolio in its DataAuthentication business for the verification of an individual's identity;

·     enable GB Group to gain an established foothold in the market for the verification of driver credentials for compliance with health & safety and corporate manslaughter legislation, and;

·     widen GB Group's offering to the insurance market for the prevention of fraud.

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 28^th February 2011, ACS's revenue was £410k; profit before interest and tax was £73k; and it had net assets of approximately £117k.

The initial consideration comprises of £0.42 million of cash plus a further amount for surplus cash acquired based on the completion accounts. Further consideration may be payable, dependent on ACS's growing its profitability, over a period of up to 4 years and subject to a cap of £5 million.  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 ACS is an excellent strategic fit which will further strengthen GB Group's ID Verification business by enriching its solutions to include confirmation of driver entitlement to drive. It also represents an opportunity for the new business to extend its reach into new markets, such as insurance, transportation and fleet management where driver checking is a major compliance issue.

GB Group has achieved strong growth in the past two years through its ability to deliver solutions that enable organisations to understand their customers and employees more accurately. We believe that this acquisition will enable clients to ensure compliance with increasingly strict health & safety and corporate manslaughter regulations by managing the checking process much more efficiently. As such, the acquisition of ACs furthers GB Group's core strategy to be the UK's leader in Identity Management.

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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:

·     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-date identity 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 ®

 

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