GB Group Raising USD160 Million To Fund USD300 Million IDology Buy (ALLISS)

LONDON (Alliance News) - Identity data intelligence company GB Group PLC on Monday said it ...

Alliance News 11 February, 2019 | 5:21PM
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LONDON (Alliance News) - Identity data intelligence company GB Group PLC on Monday said it intends to raise USD160 million through a vendor placing in order to acquire US fraud detection firm IDology Inc.

The USD301 million acquisition will be financed via a vendor placing, which will be conducted through an accelerated book build jointly managed by Peel Hunt LLP and Investec Bank.

Approximately GBP84 million of borrowings from new bank facilities will also help fund the acquisition.

In 2018, IDology's revenue was USD38.2 million and its earnings before interest, taxation, depreciation, and amortization totalled USD16.3 million. The acquisition is to be accretive to earnings in GBG's 2020 financial year.

"I am delighted to announce the acquisition of IDology. 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," said GBG Chief Executive Chris Clark.

"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," Clark added.

Shares in GB Group closed up 0.1% at 423.00 pence on Monday.

By Anna Farley;

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
GB Group PLC 553.00 GBX -1.60 -
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