Last checked at 19 Mar 2010 07:00
19 March 2010
NCC Group plc
Acquisition of leading card services, auditing and compliance business for £3.0m
NCC Group plc (LSE: NCC, "NCC Group" or "the Group"), the international, independent provider of Escrow and Assurance Testing, has acquired Meridian Services International Limited (Meridian), a card services auditing and assurance company, for a maximum consideration of up to £3.0m in cash.
Meridian specialises in conducting payment scheme logical and physical security audits, as well as offering global strategic advisory services for card manufacturing, data preparation and card personalisation. Meridian is certified by MasterCard and VISA to carry out their logical and security audit programme on a global basis and it also provides clients with Payment Card Industry Data Security Standards (PCI DSS) compliance services.
The earnings enhancing acquisition of Meridian complements the Group's existing capabilities and strengthens the current compliance offering within the Assurance Division.
The initial consideration payable on completion is £1.1m in cash, with two further payments of up to £1.9m against performance related targets over the next 26 months. The acquisition will be financed from NCC Group's existing debt facilities and internally generated cashflow.
NCC Group expects that the business should contribute over £0.6m of profit before tax on revenues in excess of £1.8m in the year ended 31 May 2012, the conclusion of the earn out period, before any investment. As at 31 May 2009, Meridian had gross assets of £381,502.
Meridian was established in 2001 and is based in Warrington, Cheshire, employing a team of 13 including management who are staying with the business. Its customers include a number of leading companies that manufacture and personalise credit cards on behalf of MasterCard and VISA worldwide.
The Company will be managed autonomously within the Group's Assurance Testing Division and will trade as Meridian Services International, a NCC Group company.
NCC Group expects to publish its IMS on 15 April 2010 and its Annual Results on 5 July 2010.
Rob Cotton, NCC Group Chief Executive, said:
"We are delighted that Meridian, the most well established and respected card Audit Company working within the global card services market today has become part of the Group.
"This acquisition is an important step as Meridian's broad range of services, extensive expertise and credentials complement and strengthen the existing offerings for Information Security, Auditing and Compliance, an area where we have seen significant growth and where we have a strategy to become a market leader."
ENDS
Enquiries:
| NCC Group | 0161 209 5200 |
| Rob Cotton, Chief Executive |
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| College Hill | 020 7457 2020 |
| Adrian Duffield/Rozi Morris |
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