Published: Thursday July 28, 2011
Written by on Investor News
LONDON –28th July 2011 – GB Group Plc, the Identity Management specialist, is delighted to announce the acquisition of the entire issued share capital of Advanced Checking Services Ltd ("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 28th 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
Weber Shandwick Financial 020 7067 0700