Chester’s GB Group buys US-based IDology for £233m

GB Group CEO Chris Clark

Chester-based identity data company GB Group (GBG) said it conditionally agreed to acquire IDology, a US-based provider of identity verification and fraud prevention services, for £233 million in cash.

For the financial year ended December 31, 2018, IDology generated revenues of $38.2 million and EBITDA of $16.3 million.

“The company intends to finance the $301 million (£233 million) for the acquisition and associated expenses through a vendor placing of new ordinary shares and approximately £84 million in borrowings from new bank facilities,” said GBG.

GBG confirmed later: “A total of 39,024,390 new ordinary shares of 2.5p each in the company have been placed by Peel Hunt LLP and Investec Bank plc by way of a vendor placing at a price of 410 pence per share, representing a 3.1% discount to the closing price on 11 February 2019 with new and existing investors, raising gross proceeds of £160 million …

“The placing shares will represent approximately 25.5% of the existing issued share capital of the company.”

GBG’s CEO Chris Clark said: “With attractive organic growth, significant synergies and a strong cultural alignment, this is a high-quality addition to GBG.

“The combination of IDology and GBG will enable us to meet the growing customer appetite for an identity verification provider with global capabilities and scale in key markets. 

“We are excited by the compelling strategic rationale behind this acquisition.

“It enables GBG to quickly expand further into North America, a key growth territory for the business.

“We have already built an exciting domestic presence in the US with Loqate, our location proposition, and IDology now gives us an excellent platform for both identity verification and fraud prevention.”

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.