Identity management business GB Group has bought out Advanced Checking Services (ACS) in a deal which could rise to £5 million.

Identity management business GB Group has bought out Advanced Checking Services (ACS) in a deal which could rise to £5 million.

Glasgow-based ACS provides electronic checking of driving licenses to allow organisations to ‘comply with their obligations under health & safety and corporate manslaughter legislation’.

GB Group says the deal will expand its product portfolio in its DataAuthentification business and enable it to gain a bigger share of the verification of driver credentials market.

While the deal consideration is only an initial £420,000, additional payments taking the deal total up to £5 million are payable over a period of four years dependent on ACS’s growing its profitability.

Richard Law, chief executive of Chester-based GB Group, says that the purchase of ACS is an ‘excellent strategic fit’.

Law adds: ‘It also represents an opportunity for the new business to extend its reach into new markets, such as insurance, transportation and fleet management where driver checking is a major compliance issue.’

For the year ending 28 February 2011, ACS recorded revenues of £410,000 and profits of £73,000.

The acquisition is the second for GB Group this month following its purchase of Data Discoveries for £610,000.

The two deals are part of GB Groups strategy to be the ‘UK’s leader’ in identity management software and services.

Law explains: ‘GB Group has achieved pleasing growth in this sector in recent years as a result of its ability to better understand individuals and their behaviour which continues to form a core part of GB Group’s strategy to be the UK’s leader in identity management.’

GB Group’s services are used by customers such as ASOS, Ladbrokes and O2.