Acquisition

1st Aug 2007 07:01

NCC Group PLC01 August 2007 1 August 2007 NCC Group plc Web testing capabilities double with £4.0m acquisition NCC Group plc (LSE: NCC, "NCC Group" or "the Group"), the international,independent provider of Escrow Solutions, Assurance Testing and Consultancy, hasacquired SecureTest Limited ("SecureTest"), an ethical security testing company,for a maximum consideration of up to £4.0m in cash. This second earnings enhancing acquisition in the web security and testing areawill substantially strengthen the Group's position in this fast growing sector. SecureTest specialises in the provision of consultant-led security testingservices, including penetration testing of networks, systems and hardware,social engineering testing of the human aspect of organisational informationsecurity and testing of organisations' compliance with the payment card industrydata security standards (PCI DSS). Its acquisition will almost double theGroup's capabilities in web security testing. The initial payable on completion is £2.5m, with a further performance relatedpayment of up to £1.5m. The latter is expected to be paid in October 2008. Inthe year ended 30 June 2007 SecureTest generated revenue of £2.2m and earningsbefore interest and tax of £0.25m. NCC Group expects that the business shouldcontribute over £0.4m of profits on over £3m of revenue for its first 12 monthsof NCC Group ownership, before any investment. The business is net workingcapital positive on acquisition. SecureTest, which was established in 2002, is based in Thame, Oxfordshire andemploys 34 people, including 18 testers. It has a client base of over 300across all sectors of the market with particular experience in local and centralgovernment as well as the finance and service sectors. Its clients include anumber of blue chip businesses which will join the growing list of NCC Groupcustomers, including BAA, Orange, Flybe and Sage. The operation will be managed autonomously within the Group's Assurance TestingDivision. It will develop close links with the rest of the Group, in particularthe Performance and Load Testing business and Consultancy Division. The policyof not supplying products or non-testing services complements NCC Group'sindependent status and position as a 'trusted advisor' to its clients. Thecompany will trade as "SecureTest, an NCC Group company." The SecureTest management team is staying with the business and NCC Group lookforward to benefiting from their technical and market experience. Rob Cotton, NCC Group Chief Executive, said: "This earnings enhancing acquisition is another important complementarydevelopment for our Assurance Testing Division as the whole area of web securityand associated testing is growing rapidly. "The combination of our original ethical hacking business with Site Confidence,our load testing business, acquired in January this year plus now SecureTest,provide the Group with a largest and comprehensive range of capabilities andexpertise." Enquiries: NCC Group (www.nccgroup.com) 0161 209 5200 Rob Cotton, Chief Executive Paul Edwards, Group Finance Director College Hill Adrian Duffield/Corinna Dorward 020 7457 2020 This information is provided by RNS The company news service from the London Stock Exchange

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