Frog Capital portfolio company, GB Group, a market leader in identity management listed on the AIM Exchange, today announced its agreement to acquire AIM-listed Capscan Parent Ltd, a leading supplier of customer registration and address management software products, for £11.2 million in cash. The acquisition creates the UK’s #2 market leader and will be funded primarily from a share placing.
The global identity verification market is growing rapidly as identity fraud, money laundering and corruption affect virtually all businesses and organisations and regulators attempt to address the problems involved. The acquisition accelerates GB Group’s drive to expand its product portfolio, providing businesses worldwide with effective and economic services to identify third parties and manage the data involved.
The acquisition offers many synergies to GB Group, including functionality and software integration and expanded global reach. The enlarged GB Group serves customers in all major regions of the world.
Commenting on the transaction, Frog Capital Managing Partner, Mike Reid, says: “We have been really impressed with GB Group’s focus on the quality of its products and services and this acquisition delivers another part of their business plan in building market share globally. It’s an excellent deal and we are delighted to support it by increasing our own shareholding through the share placement.”