Aim-listed GB Group has plans to snap up US identity verification company Acuant in a $736m (£547m) deal.
Identity software provider GB Group, which has a market cap of £1.7bn, will merge with Acuant to create a “global-leader” in identity verification services and identity fraud prevention. According to GB Group the companies have a combined revenue of £265m.
Chris Clark, the chief executive of GB Group, commented: “the combination of our two businesses is a complementary and powerful one. Together, we are creating a global leader in Identity Verification as well as strengthening our capability to capitalise on the adjacent, emerging and fast growing Identify Fraud market.”
“The US is the largest and most strategic market for location, identity and fraud services,” Clark added, referencing company plans to expand into the US market through its acquisition.
Funds for the takeover will be raised through a £300m cash box placing, which will see institutional investors compensated for capital with new shares issued by GB Group. A £5m primary bid will also allow retail investors to participate in the equity fundraise.
GB claims that the global Identity Verification arm of its business will be worth £11.7bn by 2025, and the adjacent US Identity Fraud segment is expected to be worth £7.1bn by 2025.
“Our customer, technology and geographical mix is highly complementary and culturally we are aligned both in how we invest in our people and look after our customers. We are very much looking forward to working together in the years ahead!”
Acuant management and Acuant’s private equity majority owner, Audax Private Equity are rolling approximately 28 per cent and 19 per cent of their respective holdings in Acuant into the combined Group
The Acquisition is conditional upon admission of the Placing Shares to trading on AIM and completion for the deal is expected by the end of the month.