UK identity data intelligence firm GBG conditionally acquires American firm in $300M deal

GBG, the UK-headquartered Identity Data Intelligence specialist, has conditionally agreed to acquire the entire issued share capital of IDology, a US-based provider of identity verification and fraud prevention services, for $300m (£233m) in an all-cash transaction.

IDology is a provider of identity verification services that helps remove friction both in onboarding customers and in the detection of fraud. Its US identity verification and fraud prevention services, led by its ExpectID product range, complement GBG’s identity verification solutions.

GBG can validate and verify the identity and location of 4.4 billion people globally and accesses a breadth of data from over 200 global partners to establish trust between businesses and their customers. Having completed 11 acquisitions since 2011, GBG’s $300m acquisition of IDology is its largest to date.

GBG’s existing US identity business has grown organically with customers across technology, payments and retail verticals. Meanwhile Loqate, its location intelligence solution, has offices in New York City and San Francisco and has seen high demand from household names like Abercrombie and Fitch, Oracle and Nordstrom.  The acquisition will strengthen GBG’s broader portfolio and enhance the business’ product capability and customer reach.

Over the course of 2018, IDology delivered revenues of $38.2 million at a CAGR of 16 percent, and EBITDA of $16.3 million.  The company will retain its entire senior management team and the employee base of IDology will join GBG. 

“For the past fifteen years, IDology has provided multi-layered identity verification,” IDology president and CEO John Dancu said. “With the combination of IDology and GBG, we intend to innovate, delivering exceptional solutions for our customers, focusing on driving customer revenue and preventing fraud. With GBG’s expertise in global data, we are all excited to expand our solutions and our trusted consortium network for customers across the globe.”

“I am delighted to announce the acquisition of IDology,” GBG CEO Chris Clark said. “With attractive organic growth, significant synergies and a strong cultural alignment, this is a high-quality addition to GBG. The combination of IDology and GBG enables us to meet growing customer appetite for an identity verification provider with global capabilities and scale in key markets.

“We are excited by the compelling strategic rationale behind this acquisition. It enables GBG to quickly expand even further into North America, a key growth territory for the business. We have already built an exciting domestic presence in the US with Loqate, our location proposition, and IDology now gives us an excellent platform for both identity verification and fraud prevention.”

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