A potential £1.3 billion American private equity takeover of GB Group has ended.
GTCR, based in Chicago, announced last month that it was considering a cash offer for the London-listed identity specialist, which is headquartered in Chester.
Under public company rules it had until 5pm on 4th October to make an offer – but has declined to do so after failing to reach agreement with GBG.
GBG – which has been on an acquisition drive – said in a statement issued to the London Stock Exchange: “GBG notes the statement by GTCR LLC that it is no longer evaluating a possible offer for GBG… the GBG board had early-stage discussions with GTCR in respect of a possible offer for the company, but agreement could not be reached on terms.
“The board of GBG believes the company has a long runway of sustainable growth opportunities underpinned by supportive structural drivers such as digitalisation and an ever-increasing need to protect against fraud.
“The wide-ranging capabilities GBG has developed and acquired over recent years give it a leadership position in the identity verification and fraud markets and reinforce its position as one of the largest pure-play identity software solution providers globally.
“GBG is focused on achieving its strategic and financial objectives in FY23 and beyond, and the board believes the delivery of these objectives will create significant value for GBG’s shareholders over time.”
Shares in GBG had jumped from 522p to to 647p when the takeover was mooted in early September. Trading at 614p on Monday, they fell as low as 482p early this morning following the announcement that the deal has been abandoned and are at 498p at the time of writing (9am UK).
The company’s market cap remains around £1.3bn.
GBG reported revenue for the year ended March 2022 of £242 million with operating profits of around £58m. It appointed Richard Longdon as chair in the summer.
GTCR, which closed a strategic growth fund of $2bn in January, has invested more than $20bn in more than 250 companies since its inception in 1980.
It is focused on the financial services, growth business services, healthcare and technology industries.