NCC Group Sells Escode to TDR Capital and Sharpens Focus on Core Cyber Security Business

NCC Group plc ( (GB:NCC) ) has issued an update.

NCC Group has agreed to sell its Escode software escrow and verification business to funds managed by TDR Capital for an enterprise value of £275m, with expected net cash proceeds of about £262.4m before roughly £10m of transaction costs. The divestment, which follows earlier disposals of Fox-IT DetACT and Fox-IT Crypto and brings total non-core sale proceeds to around £349m at a combined EBITDA multiple of 9.8x, will complete the group’s exit from non-core activities and sharpen its focus on its core cyber security and resilience operations. NCC plans to return a significant portion of the Escode sale proceeds to shareholders, while retaining the remainder for general corporate purposes and potential M&A, alongside a previously announced and now-launched share buyback programme of up to 10% of its share capital. Management highlighted that the core Cyber business has delivered two consecutive quarters of revenue growth on a constant currency basis and is being repositioned towards technology-led, recurring services, with the transaction expected to support further investment, strengthen the balance sheet and underpin the company’s strategy to build a scalable, global pure-play cyber security platform.

The most recent analyst rating on (GB:NCC) stock is a Hold with a £149.00 price target. To see the full list of analyst forecasts on NCC Group plc stock, see the GB:NCC Stock Forecast page.

Spark’s Take on GB:NCC Stock

According to Spark, TipRanks’ AI Analyst, GB:NCC is a Neutral.

NCC Group plc’s overall stock score is primarily influenced by its financial performance, which shows strong cash flow management and a stable balance sheet despite revenue and profitability challenges. Technical analysis indicates neutral momentum, while valuation suggests the stock may be overvalued. The absence of earnings call data and corporate events means these factors do not impact the score.

To see Spark’s full report on GB:NCC stock, click here.

More about NCC Group plc

NCC Group plc is a UK-based provider of cyber security and resilience services, offering consulting, managed services and technology-led solutions to help organisations manage cyber risk and protect critical digital assets. The company has been refocusing its portfolio to become a pure-play global cyber security and resilience business, exiting non-core activities such as software escrow and specialist cryptography to concentrate on higher-value, recurring revenue streams in a growing global cyber risk market.

Average Trading Volume: 1,068,555

Technical Sentiment Signal: Strong Sell

Current Market Cap: £420.2M

See more insights into NCC stock on TipRanks’ Stock Analysis page.