Global Business Solutions, an IT and software solutions provider in Newport, announced it is relocating to Covington.
GBS recently announced the acquisition of the historic Wadsworth Electric Manufacturing building, located at 20 W. 11th St. in Covington. The company was founded in a Covington garage back in 1995. Kenton County property records indicated that GBS President Gaby Batshoun purchased the building in late March for $5.4 million.
In total, GBS plans to invest $6.8 million in the Covington building, bringing 57 technical jobs to the city with the move. The building will serve as the company’s new headquarters.
Batshoun told LINK nky that he anticipates the move will be completed by August or September, though there is no concrete timeline as of now.
Covington Mayor Ron Washington welcomed Batshoun’s decision, touting the company’s investment in the city.
“GBS’s decision to return to its roots in Covington speaks volumes about the momentum we’re building as a hub for innovation and technology,” he said in a news release. “We’re proud to welcome GBS back home and to see them invest in a building that has long been part of Covington’s rich business history. This move reflects both the strength of our local economy and our commitment to creating an environment where forward-thinking companies can grow and thrive.”
GBS already has experience with the City of Covington, having provided integrated IT solutions, including building out the municipality’s internal workplace computer infrastructure. The company also works with the City of Florence.
Earlier this month, Covington’s Board of Commissioners approved a business incentive deal with GBS. The deal requires the company to reimburse 1.25% of payroll taxes annually for five years. To qualify for this reimbursement, GBS must annually generate at least $4 million.
In addition, the Kentucky Economic Development Finance Authority preliminarily approved GBS for up to $30,000 in tax incentives under the Kentucky Enterprise Initiative Act. KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used for research and development, and electronic processing.
If GBS meets specific annual targets during the agreement term, the company may be eligible to retain a portion of the new tax revenue it generates. The company may also claim eligible incentives against its income tax liability and/or wage assessments.