GB Group plc £11.2 million Acquisition of Capscan Parent Ltd

GB Group plc ("GB Group" or the "Group" or the "Company"), the leading Identity Management specialist, announces that it has conditionally agreed to acquire Capscan Parent Ltd ("Capscan" or the "Acquisition"), a leading supplier of customer registration and address management software solutions for a consideration of £11.2 million net of cash acquired to be satisfied by the net proceeds of the placing and the cash on the Group's balance sheet.

In addition, Peel Hunt LLP ("Peel Hunt") has conditionally placed 20 million new Ordinary Shares with new institutional investors, existing institutional investors and Directors at the Placing Price of 40 pence per Share to raise approximately £8 million for the Company. The Placing has been fully underwritten by Peel Hunt, subject to certain conditions set out in the underwriting agreement.

The Board believes that the Acquisition will:

• be earnings enhancing in the Group's first full financial year as part of the enlarged Group;
• significantly advances the Groups Strategy to lead in the market for Identity Management estimated by the Directors to be circa £435m in the UK and significantly more globally, and;
• continues the Company's stated strategy of expanding both organically and by acquisition

Information on Capscan

Capscan is a leading supplier to the estimated £75 million⁽¹⁾ and growing UK customer registration and address management software solutions market and also has a growing presence in the international address management market.  Its products and services are used in markets such as Financial Services, Retail and Leisure to help organisations rapidly verify accurate customer address details, an important attribute of Identity Management. Capscan is headquartered in London, employees 54 people and has approximately 1,800 customers.

For the year ended 31 March 2011, Capscan returned revenues of £6.8 million, adjusted EBITDA⁽²⁾ of £1.2 million and  net assets as at that date were £3.9 million.