hares in an identity verification specialist have surged after a possible takeover offer from a Chicago-based private equity firm was revealed.
GTCR is considering submitting a formal offer for Chester-headquartered GB Group, whose customers include Volvo, HSBC, eBay, John Lewis and Asos.
The company is listed on the London Stock Exchange, employs around 1,200 people and also works with Lego, Santander and IBM.
For the 12 months to March 31, 2022, GB Group posted a revenue of £242.5m, up from the £217.7m it achieved in the prior year. During the same period, its pre-tax profits fell from £34.3m to £21.7m.
Shares in GB Group have jumped by almost 20% as of 8.35am on Wednesday, September 7, to 626p each.
In response to the statement from GTCR, GB Group said: “The board of GBG notes GTCR’s statement that there can be no certainty that any firm offer will be made for the company, nor as to the terms on which any firm offer might be made.
“Any proposals received will be evaluated by the board of GBG together with its advisers.”
It added: “Pending any further announcements GBG shareholders are advised to take no action. A further announcement will be made as and when appropriate.”
GTCR has until 5pm on October 4 to announce a firm intention to make an offer for the group or not.
GTCR said: “In response to the recent press speculation regarding GB Group plc, GTCR LLC, on behalf of certain of its affiliated funds, confirms that it is currently considering a possible cash offer for the company.
“There can be no certainty that any firm offer will be made, nor as to the terms on which any firm offer might be made.
“A further announcement will be made as and when appropriate.”
Analysts at Panmure Gordon said GB Group is “one of the the UK’s best tech businesses and that it is likely to see organic growth rates in excess of 10% for the next ten years.”
It added: “The potential bid reflects continuing valuation weakness in the UK tech sector (and Dollar strength), as demonstrated by other bid situations with Darktrace, Aveva, Micro Focus and the recent takeovers of Blue Prism and Ideagen.
“Of what’s left of the UK software mid-caps, our preferred picks would be Learning Tech and Aptitude.”
