Acquisition

RNS Number : 3102K

NCC Group PLC

20 August 2012

 



20 August 2012

NCC Group plc

Acquisition of US mobile security testing specialist for £7.1m

NCC Group plc (LSE: NCC, "NCC Group" or "the Group"), the international, independent provider of Escrow and Assurance Services, has acquired US-based Intrepidus Group, Inc. ("Intrepidus"), an independent security research and testing services provider primarily focused in the mobile telecommunications sector, for a maximum consideration of £7.1m ($11.0m) in cash.

Highlights

·      Intrepidus is a leading US security testing services provider with many blue chip clients particularly in the telecommunications and financial services sectors

·      Provides a range of services to detect security flaws in mobile devices, applications, systems and networks, complementary to NCC Group's existing capabilities

·      Substantially increases NCC Group's presence in New York where it now has the largest testing team

·      Consideration of £7.1m - initially £3.7m, then two further payments of up to £3.4m in total over the next 24 months against performance related targets

·      Year to 31 July 2012, Intrepidus revenue was $3.3m

·      Financed from existing debt facilities and internally generated cash flows.

Rob Cotton, NCC Group Chief Executive, said:

"Intrepidus is a highly respected business with an extremely strong presence in the rapidly growing mobile telecommunications sector. 

"This acquisition is an important strategic development for us as it considerably widens our range of offerings, as well as industry IP, and brings a number of new blue chip technology customers.

"Intrepidus will further increase our profile and capabilities in the significant New York market where we now have the largest testing team.  It already has an excellent record of growth and we are confident that it will continue to thrive with the additional resources of the wider Group"

Enquiries:

NCC Group  (www.nccgroup.com)	0161 209 5432
Rob Cotton, Chief Executive
Atul Patel, Group Finance Director
College Hill
Adrian Duffield/ Rozi Morris	020 7457 2020

There will be an analyst conference call at 8.30am - please contact Rozi Morris at [e-mail] on telephone [phone] for details.

Acquisition of Intrepidus

Strategy

Over the last 12 years the Group has secured a leading global position in security research, testing, advice and forensics as well as web performance testing through a combination of organic and acquired growth. 

The purchase of Intrepidus is the Group's ninth in the network testing and software security space and the third in North America.  The acquisition will substantially strengthen and complement the Group's position in New York where the Group now has the largest security testing team.

The acquisition will enable NCC Group to offer a wider technical offering in both Europe and North America, as well as a broader range of information security assurance services as Intrepidus complements the Group's existing capabilities. 

Intrepidus

Intrepidus is an independent security research and development firm, working with a number of large companies including wireless technology businesses and financial institutions to pinpoint and eradicate security flaws in mobile devices, applications, systems and networks, using a multitude of testing techniques.

Intrepidus was established in 2006, is headquartered in New York and has 19 employees, most of whom are testers. 

Its clients include many blue chip organisations and 95% of its revenue is derived from the provision of services to the mobile telecommunications and financial services sectors. The business will be managed autonomously within the Group's Assurance Division by the Intrepidus management team and will trade as Intrepidus, an NCC Group company.

Financing

The initial consideration payable is £3.7m ($5.8m) in cash with two further cash payments of up to £3.4m ($5.2m) in total against performance related targets over the next 24 months to 31 August 2014.

For the year ended 31 July 2012, Intrepidus reported revenue of $3.3m with much of the future revenues being derived from recurring contracts with blue chip corporations.

Intrepidus has gross assets of $0.8m and liabilities of $0.3m.  Transaction costs, which are expensed, are about £0.4m.

The acquisition will be financed from NCC Group's existing debt facilities and internally generated cash flow.

NCC Group expects to publish its Interim Management Statement on 18 October 2012. 

 

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