GB Group buys electronic driving licence checker
CHESTER-based GB Group, which specialises in identity management services to businesses, is buying a small company which electronically checks driving licences.
It is initially paying £420,000 for Advanced Checking Services, but the price tag could eventually rise to £5m if the company meets growth targets over the next four years.
ACS undertakes electronic checking of driving licences to enable organisations to comply with their obligations under health & safety and corporate manslaughter legislation. It uses the information from the DVLA to confirm a driver’s licence status including endorsements and entitlement to drive.
The firm also has a driving licence checking application for the insurance sector aimed at the prevention of fraudulent claims.
GB said the acquisition would broaden its product portfolio, broaden its offering to the insurance sector and enable it to gain a foothold in the market for the verification of driver credentials for compliance with health & safety and corporate manslaughter legislation.
In the year to February 28 this year ACS made a profit of £73,000 on revenue of £410,000. It had net assets of approximately £117,000.
GB group chief executive Richard Law said: “This acquisition of ACS is an excellent strategic fit which will further strengthen GB Group’s ID Verification business by enriching its solutions to include confirmation of driver entitlement to drive.
“It also represents an opportunity for the new business to extend its reach into new markets, such as insurance, transportation and fleet management where driver checking is a major compliance issue.”
In a separate announcement ahead of its annual meeting chairman David Rasche said the company had made ‘good progress’ in the first four months of the new financial year.
“The board remains confident that GB Group will perform in line with expectations this year and with GB’s end markets linked to a growing emphasis on online identity for enterprise needs, we believe that long term trends favour the group.”
The firm will be announcing its half year results for the six months to September 30 on November 30.
The corporate team of North West law firm DWF led by partner Gareth McIntegart advised GB Group on the acquisition.
