GB Group targets Australian firm in £20.5m deal
CHESTER-based ID checking firm GB Group is buying an Australian fraud and credit risk software firm for £20.5m.
The firm is also raising £11m in a share placing, and will use some of the proceeds to complete the acquisition of Melbourne-based DecTech Solutions.
GB said it would pay £14.3m followed by £6.2m subject to the company hitting revenue targets. The first payment is being funded through debt, existing cash and the placing.
The company, which said the deal would be earnings enhancing in the first year, also revised up full-year operating profits by 30% to £7.2m. It expects annual revenues to rise by 15% to £41.8m.
GB has two main divisions, DataAuthentication which offers an identity verification service aimed at tackling ID fraud, money laundering and under-age gambling, and DataSolutions, which provides clients with information on their customers. Last year it bought Crewe-based criminal records checking firm CRD.
Chief executive Richard Law said: “We believe the acquisition and integration of DecTech into the group will considerably enhance our ability to serve our clients globally by augmenting and broadening our product suite with highly complementary technology that is in demand in both established and developing markets.
“This acquisition extends our capability and geographic reach and enables us to further address the growing requirements for highly customisable electronic identity verification and fraud detection services across both our customer bases and the wider market.”
