(Alliance News) - GB Group PLC on Tuesday it has bought Cloudcheck, an electronic identity verification and anti-money laundering solutions provider based in New Zealand.
The Chester, England-based identity verification, location intelligence and fraud prevention company bought Cloudcheck for an upfront price of NZD20 million, approximately GBP10 million.
GB Group explained that this comprised of a NZD12 million cash payment and the issuance of NZD8 million of shares in GB Group. The share price was based on a 30-day average share price for GB Group shares, which the company said was equal to approximately GBP4 million or 580,768 shares. This would equate to a share price of 688.74 pence.
Shares in GB Group were up 3.0% at 677.00p on Tuesday morning in London.
The company said that the acquisition is expected to be immediately enhancing to GB Group's overall revenue growth rate, operating margins and earnings per share.
In addition, dependent upon Cloudcheck's revenue growth, a payment of up to NZD4 million in cash may be payable following completion of Cloudcheck's audited accounts for the financial year ending March 31, 2023. Another NZD4 million payment may also be payable dependent on Cloudcheck's accounts for financial 2024.
In financial 2022, Cloudcheck is expected to generate revenue of approximately NZD5 million and earnings before interest, tax, depreciation and amortisation of NZD2 million.
By Heather Rydings; heatherrydings@alliancenews.com
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Gb Group (GBG)