News Article

GB Group

1 February 2022

GB Group, a listed specialist in digital location, identity and identity fraud software, has acquired a New Zealand firm in a multimillion-pound deal.

The Chester-headquartered company has acquired Cloudcheck, a provider of electronic Identity Verification (IDV), and anti-money laundering (AML) initiatives.

The upfront consideration payable to the vendors of Cloudcheck is approximately £10m comprising of a £5.87m cash payment and the issuance of £3.92m of shares in GBG based on a 30-day volume weighted average share price. 

Contingent upon Cloudcheck's revenue growth, a payment of up to £1.96m in cash may become payable following completion of audited accounts for the financial year ending 31 March 2023. 

Depending on Cloudcheck's revenue growth, an additional payment of up to £1.96m  in cash may become payable following completion of audited accounts for the financial year ending 31 March 2024.

Cloudcheck's Software-as-a-Service revenue model is based on an annual subscription fee plus volume-based usage fee. The acquisition provides customer upsell opportunities for GBG's global identity data and adjacent compliance and fraud solutions.

In the year to 31 March 2022, Cloudcheck is expected to generate approximately £2.45m revenue and £979,000 EBITDA respectively.

Before synergies, the acquisition is expected to be immediately enhancing to GBG's overall revenue growth rate, operating margins and earnings per share.

Read more at: Insider Media