GB Group completes US acquisition for £10m
IDENTITY data intelligence company GB Group has bought the remaining 74.5% of the shares of San Franscisco-based Logate for just above £10m.
The Chester-headquartered firm’s acquisition of the shares of the American provider of specialist location-based software and data takes its holding to 100%.
Loqate is one of the only businesses in the world providing international addressing and location data solutions, which are key attributes of an individual’s identity.
Its unique 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 solutions in the rapidly expanding Location-Based Service and Identity Verification sectors, adding products and services that are highly complementary with those of GBG.
The deal is costing GBG an initial £8.8m with a further maximum £1.3m payable contingent on a revenue growth target for the 12 month period ending 31 December 2015. The acquisition is expected to be earnings enhancing in the current financial year.
In the year ended December 31, Loqate’s revenues were £3.5m (2013: £1.6m), and it delivered a gross profit of £3m (2013: £1.5m).
GBG chief executive Richard Law said: “I’m extremely pleased with our acquisition of the balance of shares in Loqate and the group’s strategic progress.
“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 March 31, 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.”
