NCC buys US online security firm for up to £14.4m
NCC GROUP, the Manchester-based IT security firm, has bought US-based security testing firm iSEC Partners for up to £14.4m.
iSEC provides manual and automated security testing services to a number of Silicon Valley’s blue chip software firms as well as some international financial institutions.
NCC is paying £8.1m up front for the San Francisco-based business, with two further payments worth up to £6.3m being made if it hits performance targets.
NCC Group chief executive Rob Cotton described the deal as a “key strategic development” for NCC, which will significantly boost its presence in the US.
He said the deal “considerably widens our capabilities and industry IP”.
In the year to July 30, iSEC partner reported earnings before interest and tax of $2.4m on revenue of $7.8m. It also had a forward order book of $3.2m – much of which was through recurring contracts. However, the firm had net liabilities of $500,000 and NCC is pumping in $1.6m to improve working capital.
NCC also announced that it is increased a revolving credit facility it took out with Royal Bank of Scotland earlier this year by £10m to £35m alongside its £2m overdraft. It said the increase was “in consideration of future acquisition opportunities”.
Cotton added that the deal would allow it to cross-sell a pan-Atlantic security testing service to each other’s client base.
“We are delighted that the very experienced and successful management team is staying with the group,” he said. “We are confident that they will continue to enhance further their reputation as well as excellent financial track record of growth, supported by our resources and the group’s wider international client base.”
