Capscan
Identity checking software business GB Group has made its third acquisition in under four months with an £11.2m swoop for a London-based rival, and says it is eyeing further takeovers.
GB Group has agreed to acquire Capscan Parent, a supplier of customer registration and address management software. Chester-based GB Group also announced a placing of 20m new shares with new institutional investors, raising about £8m to help fund the acquisition.
GB Group, led by chief executive Richard Law, said Capscan is a leading supplier in a sector worth an estimated £75m a year in the UK, and has a growing international presence.
Its products and services are used in markets such as financial services, retail and leisure to help organisations verify customer address details.
Capscan has 54 staff and about 1,800 customers. It posted revenues of £6.8m in the year to March and adjusted underlying pre-tax profits of £1.2m.
GB Group said the acquisition would create cross-selling opportunities in the UK and abroad, and would significantly enhance its strategy of becoming a leader in the identity management arena.
Mr Law said: “Capscan is an excellent business and this acquisition brings together the number two and number three operators in this important and growing market of customer registration. The combination of GB Group and Capscan consolidates an already strong presence in the UK market and enhances our ability to provide international services, which we see as a key growth area. We expect the acquisition to enable GB Group to make further progress towards higher operating margins over the medium term as a result of increased scale, efficient operation and competitive differentiation.”
“Strong cash flows should continue to enable us both to reward shareholders and invest in further value-creating acquisitions.”
GB Group, which bought two smaller UK businesses in July, supplies technology which enables customers to verify callers’ identities through a series of checks.
We were exclusive financial advisers to Capscan and a team at the Manchester office of law firm Squire Sanders Hammonds advised GB Group on the acquisition.