22nd Jan 2008 07:01
NCC Group PLC22 January 2008 22 January 2008 NCC Group plc Acquisition of European Escrow provider for up to €10.5m substantially increasesinternational presence NCC Group plc (LSE: NCC, "NCC Group" or "the Group"), the international,independent provider of Escrow Solutions, Assurance Testing and Consultancy, hasacquired Escrow Europe Holdings B.V. ("Escrow Europe"), a pan-European escrowsolutions company, for a maximum consideration of up to €10.5m in cash. This earnings enhancing acquisition will increase the Group's share of theEuropean escrow market and substantially develops its international presence. The Group also reported its interims results for the six months to 30 November2007. Overall Group revenue grew by 42% to £16.4m (£11.5m in 2006) andadjusted operating profits by 41% to £4.7m (£3.3m in 2006). Adjusted fullydiluted earnings per share improved 44% to 9.8p (6.8p in 2006) and the Board hasapproved the payment of an interim dividend of 2.25p, up by 50%. Escrow Europe provides independent escrow solutions and escrow verificationtesting services to approximately 10,000 clients, predominately located inEurope, through 1,000 escrow agreements. The initial consideration on completion is €7.5m, with a further performancerelated payment of up to €3.0m. The latter is expected to be paid in two partsat the end of March and June 2008. For the year ended 31 December 2007, Escrow Europe's accounts are expected toshow, before application of NCC Group accounting policies including deferredincome, revenue of over €2.3m, earnings before interest and tax of €0.8m,including in the region of €1.0m of annual recurring revenues and net assets ofnot less than €623,000. On 31 December 2007, Escrow Europe, with NCC Group's approval, acquired theescrow contracts of Getronics PinkRoccade, a Netherlands IT services provider,providing further annual recurring revenues of approximately €300,000. NCC Group expects that the business should contribute over €1.0m of profits onrevenues of €2.5m in its first 12 months of NCC Group ownership. Escrow Europe, which was established in 1989, is based in Amsterdam,Netherlands, with a subsidiary in Munich, Germany, and franchised salesoperations in Switzerland, Belgium, Sweden, South Africa and Israel. Itcurrently employs 10 people and has a client base across all sectors of themarket including Delta Lloyd Group, a major financial services provider in theNetherlands and Logica CMG. The operation will be managed within NCC Group's Escrow Solutions division. Itwill provide increased potential for developing existing European accounts andoffer clients an improved account management service in their native languages.The policy of maintaining a neutral stance favouring neither licensees norsuppliers and providing mandatory testing of escrow deposits complements theGroup's independent status and position as a 'trusted advisor' to its clients.The company will trade as "Escrow Europe, an NCC Group Company." The Escrow Europe operational management team is staying with the business. TheGroup expects to benefit from their knowledge and experience of the Europeanescrow market. Rob Cotton, NCC Group Chief Executive, said: "This exciting earnings enhancing acquisition is an important step instrengthening our international position as the world's largest escrow providerand increases both the number of businesses and software applications protectedby one of our escrow solutions. "Research shows that, whilst 97% of organisations depend on business-criticalsoftware applications, only 18% protect all of these with escrow solutions. NCCGroup is well placed to inform and educate clients on the risks and increasetheir level of IT assurance by protecting more applications with comprehensiveescrow solutions. " Enquiries: NCC Group (www.nccgroup.com) Today 020 7457 2020Rob Cotton, Chief Executive Thereafter 0161 209 5432/5200Paul Edwards, Group Finance Director College HillAdrian Duffield/Rozi Morris 020 7457 2815/2803 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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