Chester tech firm GBG has acquired a New Zealand software company in a £10 million deal.
London-listed GBG said the acquisition of Verifi Identity Services Ltd – commonly known as Cloudcheck – would provide customer upsell opportunities for its global identity data, compliance and fraud solutions.
Founded in 2012, Cloudcheck has developed electronic identity verification and anti-money laundering solutions. Its software-as-a-service revenue model is based on an annual subscription fee plus volume-based usage fee.
More than half of the £10m will be paid in cash, with the rest issued in the form of GBG shares. Contingent upon Cloudcheck’s revenue growth, a further payment of up to £2m in cash may become payable at the conclusion of the financial year ending 31st March 2023; then another £2m in cash at the conclusion of the financial year ending 31st March 2024.
In the year to 31st March 2022, Cloudcheck is expected to generate approximately £2.5m revenue and £1m EBITDA respectively.
“We are delighted with the acquisition of Cloudcheck. It has established a market leadership position in New Zealand’s electronic IDV market by closely understanding local customer needs and delivering a strong technology-led solution,” said Chris Clark, CEO of GBG.
“This acquisition follows GBG’s proven model for global identity services: combining our internationally sourced data and expertise with locally relevant capability.
“The Cloudcheck platform will be able to consume GBG’s international data and create an opportunity for our New Zealand customers to benefit from the breadth of other identity and anti-fraud services we can provide.
“Cloudcheck will also complement GBG’s successful approach to its identity strategy in Australasia – providing experienced local presence and best-of-breed domestic product to our customers.”