GB Group plc

Software and data services for identity management, location intelligence and fraud prevention

Visit the GB Group website
Status Realised
Period Dec 10 – Apr 16
Headquarters Chester, UK

During the course of Kestrel’s Investment:

Market Cap Increased

24x to £382m

Adjusted EBITDA Up

8.7x to £14.8m

Free Cash Flow Up

6x to £11.4m

Sources: At exit price LSE, company financials FY16

GB Group is a global leader in identity management, location intelligence and fraud prevention. The company helps organisations make decisions about the customers they serve and the people they employ.

Investment rationale

  • High growth potential in emerging identity management market
  • Opportunity for consolidation in a fragmented market of smaller players
  • Potential for international expansion
  • High margin software and data platform revenues with a growing recurring element
  • Substantial downside protection from low entry price

Kestrel sold down its stake into market strength over several months culminating in a full exit in April 2016.

Kestrel involvement, actions and impact
We first acquired a stake in GB Group in 2009, after which we gradually built our position by participating in company placings and through on-market purchases. We supplemented out 5% holding by bringing in a co-investment partner in 2010.

Kestrel, together with its co-investment partner, supported several fundrasings helping provide the company with the finance required to pursue its international acquisition strategy as well as continue to deliver on its organic growth targets. We assisted in the appointment of a new Chairman in 2010 with significant M&A experience to mentor and guide the management team.