GBG to acquire IDscan Biometrics and raise up to £25 million

Chester-based identity intelligence specialist GB Group has conditionally agreed to acquire IDscan Biometrics and raise up to £25 million.

IDscan Biometrics helps authentication of documents including passports, visas, ID cards, driving licences, utility bills and work permits whilst also capturing facial biometrics which provides proof that those documents are not stolen. The combination represents a highly complementary capability set alongside GBG’s unique global Know Your Customer, Anti-Money Laundering and fraud detection solutions.

The consideration will consist of cash on completion of £37 million, with a further maximum £8 million payable contingent on reaching revenue and EBITDA targets between 12 and 18 months from completion of the acquisition.

Earlier this month, the company reported strong revenue growth  resulting in profits beating expectations. The company has posted revenue growth of 28 per cent to £73.4m in the year ending 31 March 2016, with organic revenues climbing by 16 per cent. Pre-tax profits after exceptional costs increased by 57 per cent to £9.3m over the same period.

Chief executive Richard Law said: “GBG has had another strong year achieving record revenues and delivering profitability ahead of market expectations. This is testament to the hard work, dedication and talent of our excellent team.

The Company intends to finance the acquisition through a non-underwritten share placing to raise up to £25 million and through borrowings under its existing back facilities. The transaction is expected to be earnings accretive in the first 12 months of consolidated GBG ownership.