Published: Monday November 5, 2012
Written by on Investor News
LONDON – 5th November 2012
GB Group PLC
("GB Group" or the "Group")
Acquisition of tmg.tv Limited (trading as “TMG CRB”)
GB Group, the Identity Management specialist, is pleased to announce the acquisition of tmg.tv Limited (“TMG CRB”) for a total consideration of up to £3.0 million, which comprises of an initial cash payment of £2.25 million. An additional amount of up to £0.75 million will be payable in June 2014, subject to TMG CRB achieving stretching growth targets. Excluding acquisition and integration costs, this acquisition is expected to be earnings enhancing in its first year as part of the Group.
TMG CRB, based in Nottingham, is the UK's second largest Criminal Records Bureau (“CRB”) umbrella organisation. Its CRB checking system currently processes over 170,000 checks a year and is used predominantly by organisations who recruit individuals working with children and vulnerable adults1. It is also used for pre-employment checks, a significant growth area.
The acquisition will:
- enable GB Group to access the growing market for online CRB disclosure checks which is consistent with its core proposition of enabling organisations to connect, communicate and transact with individuals safely, responsibly and profitably;
- broaden the service offering that GB Group is able to offer its growing CRB client base (which currently stands at over 80 clients), for whom it currently provides an external ID verification solution as part of these clients' CRB application processes; and
- enable GB Group to package together an integrated online employment screening solution from across the Group's data sets to provide ID Verification, criminal record disclosures and entitlement to drive checks.
The acquisition also furthers GB Group's strategy to be the UK's leading provider of Identity Management software and delivered hosted services.
In TMG CRB's unaudited accounts for the year to June 2012, the company had, in respect of its CRB activities, net revenue of £1.8 million and profit before interest and tax of £0.5 million.
Commenting on the acquisition, Richard Law (GB Group's CEO) said:
“The CRB checking sector is currently going through the same transformation that we saw in the ID Verification sector, with online processes replacing out-dated and paper-based systems. TMG CRB has built a strong foothold in this area and we consider that it will be an excellent fit with our other Group offerings. We will combine TMG CRB's capability to check criminal records with our existing ID Verification service which will help organisations make safer recruitment decisions more quickly and more efficiently. Although currently small, the TMG CRB business adds a strategic capability to our overall Identity Management portfolio and the prospect for very positive growth.”
1 Prior to the completion of the acquisition, TMG CRB was a combined business comprising a CRB checking division and a non-CRB related Creative Communications agency. The acquisition is in respect of its CRB checking division, the non-CRB checking activities having been transferred out prior to acquisition.
For further information, please contact:
GB Group plc
Richard Law, Chief Executive
Dave Wilson, Finance Director
Peel Hunt LLP (Nominated Adviser and Broker)
020 7418 8900
020 7653 9850
Who is GB Group?
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 under age content, purchases and gambling
- ID Customer Registration, which includes software and services for quick and accurate customer registration and validation of records
- ID Engagement 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®