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1 February 2022 |
GB GROUP PLC
(“GBG”, the “Group” or the “Company”)
Acquisition of Verifi Identity Services Limited (commonly known as “Cloudcheck”)
GB Group plc (AIM: GBG), the expert in digital location, identity and identity fraud software, is pleased to announce that it has acquired Cloudcheck, a leading provider of electronic Identity Verification (IDV), and Anti-Money Laundering (AML) solutions in New Zealand.
The upfront consideration payable to the vendors of Cloudcheck is NZ$20 million (approximately £10 million) comprising of an NZ$12 million cash payment and the issuance of NZ$8 million of shares in GBG based on a 30-day volume weighted average share price (equal to approximately £4 million or exactly 580,768 shares) .
Contingent upon Cloudcheck's revenue growth, a payment of up to NZ$4 million in cash may become payable following completion of audited accounts for the financial year ending 31 March 2023. Furthermore, contingent upon Cloudcheck's revenue growth, an additional payment of up to NZ$4 million in cash may become payable following completion of audited accounts for the financial year ending 31 March 2024.
Acquisition Highlights
- Founded in 2012, Cloudcheck is a leading provider of electronic Identity Verification, and Anti-Money Laundering solutions in New Zealand.
- 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 NZ$5 million revenue and NZ$2 million 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.
Chris Clark, CEO, commented:
” We are delighted with the acquisition of Cloudcheck. It has established a market leadership position in New Zealand's electronic IDV market by closely understanding local customer needs and delivering a strong technology-led solution.
This acquisition follows GBG's proven model for global identity services: combining our internationally sourced data and expertise with locally relevant capability.
The Cloudcheck platform will be able to consume GBG's international data and create an opportunity for our New Zealand customers to benefit from the breadth of other identity and anti-fraud services we can provide.
Cloudcheck will also complement GBG's successful approach to its identity strategy in Australasia – providing experienced local presence and best-of-breed domestic product to our customers. “