Ncc Regulatory News (NCC)

1 May 2009 07:00



1 May 2009 

NCC Group plc

Acquisition of Swiss Escrow Business 

NCC Group plc (LSE: NCC, "NCC Group" or "the Group"), the international, independent provider of Escrow Solutions, Assurance Testing and Consultancy, has acquired the remaining 76% shareholding of Escrow Europe Switzerland, a Zurich based franchise operation of Escrow Europe. The Group acquired the original 24% stake when it purchased Escrow Europe in January 2008.

This earnings enhancing acquisition will increase the Group's share of the European escrow market and further develops its international presence. The consideration will not exceed CHF 0.90m even after completion of a small performance related payment which will be paid on 1 February 2010.  Both the initial and final payments have no impact on the Group's net debt position and will be paid for out of Group cash flows. 

NCC Group expects this subsidiary will have recurring revenues of circa CHF 275,000 in its first 12 months of NCC Group ownership.

The operation will increase the potential to develop existing European accounts and offer clients an improved account management service in their local languages. It will be managed by the Group's Escrow Europe division, which is headquartered in Amsterdam. The business will trade as "Escrow Europe Switzerland, an NCC Group Company."

Rob Cotton, NCC Group Chief Executive, said:

"This earnings enhancing acquisition is another step in strengthening our position as the world's largest escrow provider and further demonstrates our commitment to customer service.

"Research shows that, whilst 97% of organisations depend on business-critical software applications, only 18% protect all of these with escrow solutions which in these financially unstable times represent a significant and unacceptable corporate risk. We are well placed to inform and educate clients on these risks and increase their level of IT assurance by protecting more applications with comprehensive escrow solutions."

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