OFT probes GB Group’s Capscan deal

THE Office of Fair Trading is probing last month’s £11m acquisition by Chester-based identity management software company GB Group of its rival Capscan.

In a brief statement the OFT said it is “considering whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation under the Enterprise Act 2002.”

The watchdog said its analysis of the deal would examine whether it might “be expected to result in a substantial lessening of competition” and should be passed on to the Competition Commission for investigation and report.

Capscan employs 54 people in London and Manchester and added nearly £7m to GB Group’s turnover.
 
Announcing the deal last month GB Group chief executive Richard Law said: “Capscan is an excellent business and this acquisition brings together the number 2 and number 3 operators in this important and growing market of customer registration.”