As previously announced the GBGroup has acquired the remaining 74.5 per cent shareholding of Loqate in a multimillion-pound deal, meaning that it now wholly owns the specialist location-based software and data provider.
The Chester-headquartered identity intelligence specialist announced that it had agreed to pay $13.4m (£8.8m) in cash on completion for the San Fransisco-based business with a further maximum $2m payable dependent on a revenue growth target being met for the 12-month period ending 31 December 2015. The acquisition is expected to be earnings enhancing in the current financial year.
For the year ending 31 December 2014, Loqate’s revenues were $5.4m and it delivered a gross profit of $4.7m.
Loqate is one of the only businesses in the world providing international addressing and location data services, which are key attributes of an individual’s identity. Loqate’s global location intelligence technology platform enables clients to capture, verify and geocode almost any address worldwide.
It powers a significant proportion of the world’s data quality tools through partners including Oracle, IBM, Pitney Bowes and Software AG, as well as supporting data services in the rapidly expanding location-based service and identity verification sectors.
“GBG was an early investor in Loqate and we’ve seen this business grow strongly, building impressive and strategic relationships with partners such as IBM, Oracle and Pitney Bowes and Software AG. GBG’s international activities now contribute a significant proportion of our revenue and were a principle contributor to our better than expected profits for the year to 31 March 2015, as announced last week.
“Loqate is a good strategic fit for GBG and it gives the group an established office and first-class team on the West Coast of the USA.”
Source: GBGroup Press Release