NCC Group Explores Potential Sale of Escode
Deal News | Apr 30, 2025 | Business Cloud
NCC Group, a Manchester-headquartered cybersecurity firm, is weighing options for the potential sale of its subsidiary, Escode, specializing in software escrow and verification services. Several private equity firms, including Montagu Private Equity and Bridgepoint, are reportedly preparing bids for Escode, with a potential valuation between 300-400 million GBP. Currently, no formal offers have been received, and NCC Group has not decided on a transaction at this point. The company, led by CEO Mike Maddison, is also evaluating disposals of other subsidiaries. Additionally, NCC recently established a new 120 million GBP revolving credit facility to support future strategic initiatives after a previous facility expired. This refinancing, backed by National Westminster Bank plc, HSBC UK Bank plc, Barclays Bank plc, and Santander UK plc, enhances the group's financial flexibility. NCC Group aims to use its liquidity to bolster its strategic direction moving forward. NCC's market capitalization stands at 478 million GBP, with its share price experiencing a 12% increase over the past year. It is further bolstered by a net cash position acquired post the 78.5 million GBP sale of Fox Crypto B.V.
Sectors
- Cybersecurity
- Private Equity
Geography
- United Kingdom – NCC Group is headquartered in Manchester, UK, and the financial activities such as the credit facility involve UK-based banks.
- Global – NCC Group employs 2,200 people worldwide, suggesting its operations have a global reach.
Industry
- Cybersecurity – NCC Group operates in the cybersecurity sector, focusing on software escrow and verification services, which are crucial for protecting intellectual property and ensuring software integrity.
- Private Equity – The article discusses potential acquisitions by private equity firms Montagu Private Equity and Bridgepoint, which operate in the private equity sector.
Financials
- 300-400 million GBP – Potential value of NCC Group's Escode subsidiary if sold.
- 478 million GBP – Current market capitalization of NCC Group.
- 120 million GBP – Newly secured revolving credit facility for NCC Group's growth strategy.
- 78.5 million GBP – Proceeds from the sale of Fox Crypto B.V., bolstering NCC's net cash position.
- 162.5 million GBP – Previous credit facility replaced by the new agreement.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| NCC Group | Target Company | Company | A Manchester-headquartered cybersecurity firm exploring the sale of its subsidiary, Escode. |
| Escode | Subsidiary | Company | NCC Group's subsidiary specializing in software escrow and verification services. |
| Montagu Private Equity | Potential Buyer | Company | A private equity firm reportedly interested in acquiring NCC's Escode business. |
| Bridgepoint | Potential Buyer | Company | Another private equity firm showing interest in acquiring NCC's Escode. |
| Barclays Bank plc | Financial Lender | Company | Part of the syndicate providing NCC Group a new revolving credit facility. |
| HSBC UK Bank plc | Financial Lender | Company | A bank part of the syndicate providing a credit facility to NCC Group. |
| National Westminster Bank plc (NatWest) | Financial Lender | Company | Part of the syndicate enhancing NCC Group's financial forward-looking strategies. |
| Santander UK plc | Financial Lender | Company | A newcomer to the syndicate providing a financial framework to NCC Group. |
| ByteDance's TikTok | Corporate Client | Company | One of Escode's corporate clients, highlighting the unit's industry significance. |
| Fox Crypto B.V. | Former Subsidiary | Company | Former subsidiary of NCC Group, sold for 78.5 million GBP. |
| Mike Maddison | CEO | People | CEO of NCC Group, overseeing its strategic direction and potential disposals. |
| Guy Ellis | CFO | People | CFO of NCC Group, responsible for its financial strategy and operations. |