GB Group acquires CRB checks firm
CHESTER-based identity management business GB Group is branching out into Criminal Records Bureau (CRB) checks following a £3m acquisition.
GB is buying Nottingham-based TMG CRB which handles 170,000 CRB checks a year, mainly for organisations working with vulnerable adults.
At present GB carries out identity verification aimed at tackling ID fraud, money laundering and under-age gambling.
It said the deal would broaden its services and tap into a growing market for CRB checks. It also plans to offer an “integrated online employment screening solution” which will add CRB checks to its existing services.
GB chief executive Richard Law said: “The CRB checking sector is currently going through the same transformation that we saw in the ID Verification sector, with online processes replacing out-dated and paper-based systems.
“TMG CRB has built a strong foothold in this area and we consider that it will be an excellent fit with our other Group offerings. We will combine TMG CRB’s capability to check criminal records with our existing ID Verification service which will help organisations make safer recruitment decisions more quickly and more efficiently. Although currently small, the TMG CRB business adds a strategic capability to our overall Identity Management portfolio and the prospect for very positive growth.”
In the year to June TMG CRB’s had revenue of £1.8m and profit before interest and tax of £500,000. GB is paying £2.25m cash and a further £750,000 in 2014 depending on performance targets. It expects it to be earnings enhancing in the first year.
The Manchester office of law firm Squire Sanders advised GB. The team was led by corporate partner, Andrew Millar and Damien Brown, assisted by trainee Jack Mayall. Partner Patrick Ford provided the tax advice whilst the property advice was provided by associate Lindsey Clark.
