NCC pays £14.5m for US cyber security firm

LISTED IT security business NCC Group has acquired a US cyber security and payment consultancy for up to £14.5m ($18.75m) in cash.

Based in Silicon Valley, Payment Software Company Inc provides cyber security, payment and compliance-related consulting services to the global payments industry as well as the financial and retail sectors.

Set up in 2004, PCS employs 41 people and has offices in Toronto, Sydney and London, with support staff are based in California and operational staff around the world.

In 2015, it generated adjusted EBITDA of $1.6m on revenue of $9.5m, with approximately 85% of the revenue annually repeating.

The deal will see an initial payment of $15m, with two further payments of up to $1.875m each, over the next two years depending on performance.

Manchester-based NCC said that as well as acquiring PSC’s cyber security practice, the deal will expand its presence in the payment card industry (PCI) sector and complement its existing UK PCI business.

Rob Cotton, NCC Group chief executive, said: “This earnings enhancing acquisition is part of our strategy to acquire services-led businesses in both Europe and North America, to complement our geographical and technical presence.

“PSC is one of a very few companies that can provide expert services and solutions to organisations that require specialist compliance, consulting and cyber security testing services in the substantial and growing global payments industry.

“The addition of PSC, with its quality management team, is an extremely good fit with the rest of our cyber security capabilities. Its board level relationships provide us with an opportunity to improve our customer penetration and bolster our global capabilities, particularly in the US.”