Software testing and consulting business NCC Group has acquired the security testing company iSEC Partners for up to £14.4 million.
Under the terms of the deal, an initial sum of £8.1 million will be followed by two performance-related payments totalling up to £6.3 million.
Rob Cotton, NCC Group chief executive, comments that the acquisition will increase the company’s presence in the US and will bring a number of leading blue chip technology customers. He adds: ‘The acquisition will enable us to provide our UK customers with US security testing services whilst iSEC Partners’ customers will now have access to our European capabilities.’
The acquisition was financed from existing debt facilities and internally generated cash, and is predicted to be immediately earnings enhancing. NCC has also increased its revolving credit facility from £25 million £35 million.
US-based iSEC Partners is a security testing business that checks the security of clients’ facilities such as computer networks. For the year to July 2010, iSEC Partners reported a net profit of $2.4 million (£1.5 million) on a turnover of $7.8 million.
Manchester-based NCC provides business IT advisory and protection services to around 15,000 public and private sector organisations including Microsoft and the BBC. The iSEC management team will remain with the enlarged company.