GB Group collects postcode validation firm in £74m deal

Chester-based identity data intelligence specialist GB Group is to acquire PCA Predict, a provider of UK and International address validation and data quality services, for £73.8m.

Headquartered in Worcester, PCA Predict provides UK and international address validation and data quality services. It employs 50 staff, including satellite offices in the US and Germany.

The company plans to fund the deal through a share placing, which it says will raise up to £58m.

The deal will create a £101m-turnover group, with PCA’s unaudited figures showing revenues of £13.7m in the year to February.  It will be funded by £15.8m cash and £58m raised by the placing of 17.06m shares. This stake will represent 12.7% of the group’s existing share capital.

GBG said the acquisition was highly complementary to its GBG Matchcode360 and GBG Loqate businesses, would provide scale to “a fundamental component” of GBG’s Identity Data Intelligence proposition and add to earnings within 12 months of consolidation.

Chris Clark, GBG’s chief executive, said: “Bringing together PCA Predict’s easy to deploy SaaS platform with our existing in depth GBG Identity Data Intelligence data sets creates a leader in Address Data Intelligence.

“There is a strong strategic and cultural fit in combining the capabilities of PCA Predict and GBG which will bring significant benefit to our customers.”