A group of private equity firms are showing interest in one of the key subsidiaries of NCC Group, a cybersecurity specialist listed in London.
Sky News has reported that Montagu Private Equity and Bridgepoint are two of the firms considering bidding for Escode, a company specializing in software escrow and verification services.
Sources in the city have mentioned that a potential deal for Escode could fall within the range of £300m to £400m. This is significant considering that NCC Group’s total market capitalization on Monday afternoon was slightly above £440m.
While Montagu Private Equity and Bridgepoint are known to be interested, there are several other private equity firms eyeing Escode as well. However, there is no formal auction process currently ongoing, and the identities of these other parties remain undisclosed.
The news of private equity interest in Escode has caused a surge in NCC’s shares, with a rise of over 6% during the trading session. Speculation in the market suggests a potential takeover bid or the sale of certain parts of the company.
The attention from buyout firms towards Escode follows a series of reviews conducted by NCC regarding possible divestments. In January 2024, the company announced that its board had decided not to resume the strategic review of Escode at that time. Additionally, other divisions within the organization have also been subject to initial discussions with potential buyers.
NCC Group has a workforce of approximately 2,200 individuals spread across Europe, North America, and Asia-Pacific. In recent news, the company revealed that it had secured a £120m loan facility through a consortium of banks including Barclays, HSBC, NatWest, and Santander UK.
NCC, Montagu, and Bridgepoint have all opted not to provide comments at this time.