NCC secures Next Generation acquisition
Article Date: Nov 27 2008An IT security specialist has completed its third acquisition in 15 months after unveiling its takeover of Next Generation Security Software.
NCC Group could pay as much as £10 million in cash for the security and testing company in a deal funded by debt and off its balance sheet. On completion, £5.2 million was paid with up to £4.8 million due in August next year.
This latest deal is part of its strategy to strengthen its network, testing and software security operations. Its previous transactions were the £8.7 million acquisition of Escrow Europe and spending up to £4 million on SecureTest in August 2007.
NCC’s directors expect Next Generation to contribute revenues of £6 million and a £900,000 pre-tax profit to its balance sheet in the next 12 months.
The acquired business will now trade within NCC’s assurance testing division and will continue to be led by its existing management.
NCC chief executive Rob Cotton said he targeted Next Generation due to its reputation. “This acquisition is an important step in the development of our assurance division and clearly fits with our strategy of being market leader in the area of web security and associated testing.”
Surrey-based Next Generation was established in 2001 and employs 52 people, some of whom are based in its offices in the US, Australia and Scotland. Its services include penetration testing, infrastructure and application assessment, cryptography evaluation and forensics. Its clients include Microsoft, Comic Relief, Commerzbank, McAfee and Centennial Software.
In the year to June 2008, Next Generation had a £5.2 million turnover producing a pre-tax profit of £500,000. At the same date its assets were valued at £2.4 million.
