An identity verification specialist has announced the acquisition of a US counterpart in a deal worth more than £540m.
Chester-headquartered GB Group (GBG) has snapped up identity verification and KYC/AML compliance provider Acuant for $736m (c. £543m).
The AIM-listed buyer's deal was supported by a $210m (c. £155m) drawdown from a new £175m revolving credit facility, equally split across HSBC 海角视频, Silicon Valley Bank, Lloyds Banking Group, Citibank and the Bank of Ireland.
The remaining funds have been raised through a combination of a placing of new shares to institutional investors, new GBG shares issued to certain of the Acuant management and private equity vendors and, existing cash.
David Ward, chief financial officer at GBG, said: "We have worked with and admired Acuant for many years.
"Bringing the business within GBG positions us as a confident, global leader in identity intelligence.
"Both companies share synergies as highly profitable, cash generative and ambitious businesses, making it an easy decision to pursue the opportunity to combine forces.
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"We’re grateful for the support of our banking partners throughout the course of this deal and their understanding and insights on how the expanded group can successfully grow internationally."
For the 12 months ended September 30, 2021, Acuant generated $58.1m in revenue, an increase of 22% on the year before.
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Yossi Zekri, Acuant's president and CEO, added: "This is an exciting day for Acuant. We are very proud of everything that Acuant has achieved to date - building a world class technology portfolio and a strong market position in the US across multiple sectors.
"There is still significant opportunity ahead and we feel that being part of GBG is the best way for us to capitalise on those opportunities.
"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."
Completion of the deal is expected to occur on or around November 29.
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Mark Rowan, relationship director at HSBC 海角视频, added: "GBG is a market leader that has consistently demonstrated strong growth and ambition to expand. The need for GBG’s services is continuing to escalate across the globe.
"As identity fraud continues to increase, businesses are investing more in prevention and consumers are demanding greater security and privacy protections.
"As a British business furthering its international expansion, backing this acquisition was a fantastic opportunity for HSBC 海角视频."