GB Group plc (GBG), a leader in identity data intelligence, has announced a landmark acquisition deal valued at £73.8 million.
This strategic move to acquire PCA Predict will enhance GBG’s service capabilities and market presence, demonstrating a commitment to expanding their influence in the data intelligence sector.
Acquisition Overview
Data intelligence firm GB Group plc (GBG) has strategically positioned itself for future success with its landmark acquisition of PCA Predict for £73.8 million. This deal strengthens GBG’s suite of identity data intelligence services. The acquisition’s funding strategy is a blend of a major share placing and cash, ensuring a robust investment in the company’s growth trajectory.
PCA Predict, an industry-renowned provider of validation and data quality services, complements GBG’s existing offerings like GBG Matchcode360 and GBG Loqate. The merger of these capabilities is poised to enhance customer experiences and operational efficiencies across the board.
Financial Implications
GBG plans to issue 17.1 million ordinary shares at 340 pence each, raising up to £58 million. This ambitious share placing represents approximately 12.7% of the company’s existing share capital, illustrating a bold move to finance the acquisition effectively.
The remaining £15.8 million will be paid in cash, underscoring GBG’s strategic allocation of resources. This mix of funding demonstrates their commitment to maintaining financial stability while pursuing significant growth opportunities.
Executive Insights
Chris Clark, the chief executive of GBG, emphasised the strategic and cultural alignment between the two companies. His enthusiasm for the acquisition highlights its potential to elevate GBG’s market position and enhance customer offerings.
“Bringing together PCA Predict’s easy-to-deploy SaaS platform with our existing in-depth GBG identity data intelligence data sets creates a leader in address data intelligence,” Clark stated. This integration is expected to deliver substantial benefits for the firms’ combined customer base.
PCA Predict’s Market Position
PCA Predict has demonstrated robust financial health with an EBITDA of £18.5 million on revenues of £87.3 million in the year ending March 2017. This highlights the company’s operational efficiency and market strength.
The company’s SaaS solution serves over 9,000 SME customers, reinforcing its position as a significant player in the data intelligence sector. This extensive user base indicates a proven track record of delivering quality services.
Strategic Synergies
The combination of GBG and PCA Predict will allow the entities to leverage their respective strengths, creating a synergetic relationship that optimizes operations across various domains.
GBG and PCA Predict’s integration is expected to bring enhanced accuracy and performance to address data intelligence, promising transformative impacts on service delivery and customer satisfaction.
GBG’s strategic focus is on expanding their market share by aligning PCA Predict’s innovative solutions with their data intelligence portfolio. This alignment is anticipated to result in a competitive advantage in the marketplace.
Future Outlook
The board of GBG is optimistic about the future success of the merger, anticipating significant advancements and strengthened market presence.
This acquisition is a forward-thinking move, aligning with GBG’s long-term goals to enhance service offerings and drive sustainable growth.
With a solid financial strategy and a clear vision, the company is positioned to redefine success in the identity data intelligence industry.
The acquisition of PCA Predict by GBG is not just a financial transaction; it is a strategic alignment to enhance future growth.
By integrating PCA Predict’s capabilities, GBG is poised to lead in the address data intelligence sphere, promising a future of innovation and excellence.
