In a significant development in the corporate world, the private equity firm that holds a major stake in Asda is nearing a remarkable £275 million agreement to acquire a segment of the publicly traded cybersecurity firm, NCC Group. This potential deal involves the purchase of Escode, a division that has been the focus of acquisition discussions since the previous summer.
According to insider information shared with Sky News, TDR Capital is in the final stages of negotiations to secure Escode, which is known for its expertise in software escrow and verification services. Banking sources indicate that an agreement between TDR and NCC regarding Escode could be finalized as soon as early this week.
TDR appears to have successfully navigated competition from several other interested parties, including notable buyout firms like Cap10, Platinum Equity, and Montague Private Equity, all of which expressed interest in acquiring Escode.
Should this transaction proceed, NCC would transition into a dedicated cybersecurity service provider, shifting its focus towards generating higher-value, recurring revenue streams from its remaining operations. In light of the anticipated sale of Escode, NCC has indicated that it may look into returning a substantial amount of capital to its shareholders, potentially exceeding an earlier announced share buyback program.
Last summer, Sky News reported that NCC had also engaged advisors to consider selling off its cybersecurity business, highlighting the strategic shifts within the company.
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NCC currently employs around 2,200 individuals across Europe, North America, and the Asia-Pacific region. On the stock market front, shares of NCC closed at 139.8 pence on Friday, leading to a market capitalization of approximately £440 million.
At this moment, both NCC and TDR Capital have chosen not to comment on the ongoing discussions.
