NCC acquires US security testing business

NCC is buying US-based security testing business iSec partners for up to £14.4m. The software escrow and assurance testing company says the deal is immediately earnings enhancing. The initial payment is £8.1m, with two more payments totalling up to £6.3m depending on performance. The iSec business tests networks, websites and databases against IT security threats. It made an operating profit of $2.4m on revenues of $7.8m in the year to July 2010. The order book is worth $3.2m and it has significant recurring revenues. NCC has increased its revolving credit facility by £10m to £35m. The acquisition significantly increases NCC's exposure to the US. NCC says that the deal will enable it to offer UK customers access to US security testing services. Ncc