Chester-based GB Group’s bought software company Edinburgh-based  Data Discoveries. It will now will pay £420,000 in cash for Advanced Checking Services initially, plus a further sum for surplus cash depending on completion accounts. The acquisition price could rise to £5m, depending on the Glasgow company’s profitability over the next four years.

The largest shareholder, Glaswegian software specialist David Blockley, who founded the company in 2006 and is its business development director, holds 50.2% of Advanced Checking Services,  272 Bath Street, Glasgow and could be paid £2.51m for his stake if profitability pans out as forecast.

The company posted pre-tax profits of £73,000 in the year to the end of February, 2011, on a turnover of £420,000. The Herald quotes  Blockley saying “It’s hard work to build a business from zero to this point, but this deal gives us access to new markets and it will take us to the next level.”

With more than 400 clients, including Stagecoach and FedEx, Checking Services specialises in the electronic checking of driving licences to enable organisations to comply with their obligations under health and safety and English corporate manslaughter legislation.

Its service uses information from the DVLA to confirm driver licence status including endorsements, entitlement to drive, to ensures compliance with regulations around an employer governance.

The company also conducts insurance companies and brokers checks to prevent fraudulent claims. Fellow directors Ronald Johnson and Nicholas Southan, both hold 19.8% stakes in the company and director Adrian Parry has a 10% shareholding.

The company’s eight staff will be retained at the Glasgow base, including its four directors.

TELECOMS GETS CLOUD PROFILE
Pinnacle Telecom Group PLC saidit has purchased an IT outsourcing business MacLellan IT Ltd for around £1.1m  in a bid to expand its cloud-computing services.



Pinnacle, which provides internet phone along with other IT services, has paid for the Fife-based business by the issue of 186m new shares, at 0.57p per share, representing a 58% premium to June 29 closing price.



Pinacle said the purchase would be earnings enhancing from the outset, and would bring strong cross-selling opportunities.

 MacLellan reported unaudited retained profit of £240,000, for the year to June 2011 compared with £272,000 a year earlier.



Pinnacle is known for providing communication services for large scale events as with the  recent Royal Wedding. It also provided the voice and data network for 'T In The Park,' Scotland's biggest outdoor music event, which in July hosted popular artists including Beyonce, Tom Jones, and the Foo Fighters.