A clutch of private equity firms are reportedly eyeing up a key subsidiary of NCC Group, the cybersecurity firm listed on the London Stock Exchange. Montagu Private Equity and Bridgepoint are apparently just two of the PE giants rumoured to be among the buyout specialists considering bids for Escode, a division focused on software escrow and verification services.
According to City sources, a potential acquisition of Escode could be valued between £300 million and £400 million. This figure is significant, given that NCC Group’s total market capitalisation stood at just over £440 million on Monday afternoon.
While Montagu and Bridgepoint are known to be interested, several other private equity houses are also said to be in the mix. However, the identities of these additional parties remain unclear and a formal auction process has not yet commenced.
Market speculation surrounding a potential takeover bid or the sale of parts of the company fuelled a surge in NCC Group’s share price, which climbed by more than 6% during Monday’s trading session.
The interest from buyout firms in Escode comes after a series of internal reviews at NCC regarding potential disposals. Back in January 2024, the group stated that its board had “decided not to restart the strategic review of Escode at this juncture”. Nevertheless, other segments of the company have also been the subject of preliminary discussions with potential buyers.
NCC Group employs approximately 2,200 individuals across its operations in Europe, North America, and the Asia-Pacific region. On Monday, the company also announced the signing of a £120 million loan facility with a consortium of major UK banks, including Barclays, HSBC, NatWest and Santander UK.
Image source: NCC Group
