Chester-based identity data company GB Group said it conditionally agreed to acquire address validation firm PCA Predict for a total of £73.85 million.

“The £73,852,423 total consideration will be satisfied by the vendor placing of £58,000,000 in placing shares and £15,852,423 in cash of which £10,000,000 is to be held in escrow,” said GB Group.

“The placing price represents a discount of approximately 3.4 % to the closing mid-market price of GBG’s existing ordinary shares of 352 pence on 8 May 2017, being the last practicable date before this announcement.”

GB Group said that with more than 9,000 customers, PCA processes millions of transactions every day for some of the world’s largest ecommerce companies.

GB Group CEO Chris Clark said: “The joining of PCA Predict and GBG is a very exciting prospect.

“There is a strong strategic and cultural fit in combining our capabilities which will bring significant benefit to our customers.

“PCA already serves many leading ecommerce companies who are transforming the way we shop and access services online.”

Guy Mucklow, President at PCA Predict, said: “We are really excited about becoming part of GBG.

“It brings together two highly successful, growth focused, businesses with complementary skills and similar cultures to create a world class technology company.

“The GBG team has a long history of integrating acquisitions successfully; together we now have the very best knowledge and expertise in this sector.”