Manchester cybersecurity firm NCC Group has agreed a £156 million acquisition of the intellectual property management business within US firm Iron Mountain.
NCC, listed in London, said the proposed deal would be significantly earnings enhancing from completion and provide greater global scale for its software resilience division.
Iron Mountain’s intellectual property management division provides software resilience services to 6,000 clients in the US market, including blue chip companies and ‘which spans a majority of the Fortune 500’.
It reported revenue of £23.3m and EBITDA of £15.4m for the 12 months ended 31st December 2020.
The deal would make the US region the largest contributor of the NCC division’s revenues and profits.
https://businesscloud.co.uk/regulators-block-us-takeover-of-manchester-digital-id-firm/
Led by John Boruvka and Joy Egerton, the US team is expected to be retained as part of the acquisition.
“This acquisition will transform NCC Group’s software resilience business, making it a market leader, and deliver immediate financial and operational benefits to the whole of the group,” said CEO Adam Palser.
“The IPM business shares many similarities with our own software resilience business, including a commitment to providing exemplary service for clients. There are tremendous opportunities to grow the combined business by offering IPM’s blue-chip clients the choice of new services and support.
“Following completion, NCC Group will be a stronger and broader business with an even greater ability to support clients in the ceaseless struggle against cyber-crime in all its forms.”
The cash acquisition will be funded by £70m from the estimated gross proceeds of the placing; £50m from a new three-year term facility agreement; existing cash balances of £7m; and the balance from NCC‘s existing revolving credit facility agreement.