GB Group Plc, the identity management specialist, announced 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.
Source: GB GROUP PLC Press Release