GB Group PLC Acquires Loqate Inc.
GBGroup, the identity data intelligence specialist, today announces that it has acquired the remaining 74.5% of the shares of Loqate Inc. ("Loqate"), the San Francisco-based provider of specialist location-based software and data, that it did not already own.
The Group's acquisition of 74.5% of shares in Loqate takes its holding to 100%. Loqate is one of the only businesses in the world providing international addressing and location data solutions, which are key attributes of an individual's identity. Loqate's unique global location intelligence technology platform enables clients to capture, verify and geocode almost any address worldwide. It powers a significant proportion of the world's data quality tools through partners including Oracle, IBM, Pitney Bowes and Software AG, as well as supporting data solutions in the rapidly expanding Location-Based Service and Identity Verification sectors. It thereby adds products and services that are highly complementary with those of GBGroup.
The consideration will consist of cash on completion of US$13.4 million, with a further maximum US$2.0 million payable contingent on a revenue growth target for the 12 month period ending 31 December 2015. The acquisition is expected to be earnings enhancing in the current financial year.
For the year ended 31 December 2014†, Loqate's revenues were US$5.4 million (2013: US$2.5 million), it delivered a gross profit of US$4.7 million (2013: US$2.3 million). The balance sheet of Loqate had US$1.4 million in cash, deferred income creditor of US$3.2 million and overall net liabilities of US$0.4 million.
Commenting on the acquisition, Richard Law, CEO of GBGroup, said:
"I'm extremely pleased with our acquisition of the balance of shares in Loqate and the Group's strategic progress. GBG was an early investor in Loqate and we've seen this business grow strongly, building impressive and strategic relationships with partners such as IBM, Oracle and Pitney Bowes and Software AG. GBG's international activities now contribute a significant proportion of our revenue and were a principle contributor to our better than expected profits for the year to 31 March 2015, as announced last week. Loqate is a good strategic fit for GBG and it gives the Group an established office and first-class team on the West Coast of the USA."