Private Equity Firms Maneuvering for £400m Division of NCC, Metacollapse
Here's a fresh take:
Private equity sharks are stalking NCC Group's prized asset
Source: NCC, Montagu Private Equity, Bridgepoint
Get ready to roll up those sleeves, folks! Looks like there's a cyberspace battle brewing between some bigwigs in the private equity world and the UK's very own cybersecurity giant - NCC Group. The rustling in the bushes has led our eagle-eyed team to suspect that Montagu Private Equity and Bridgepoint are eyeing one of NCC's key subsidiaries, Escode[1].
Escode, a specialist in software escrow and verification services, could fetch between £300m and £400m in a potential deal[1], while NCC Group's total market cap is a mere £440m[1]. Watch out for more predators lurking in the shadows, as other private equity firms are also reportedly interested[1].
No formal auction is underway[2], but it's just a matter of time, you know what they say - when the sharks start circling, you better be ready to swim or fight! The dramatic rise in NCC's shares by more than 6% during trading suggests that the market has caught wind of this predatory power play[1].
This move follows a series of reviews by NCC about potential disposals, with Escode being one of the prime targets[4]. NCC is a global company, employing approximately 2,200 individuals across Europe, North America, and Asia-Pacific[3]. The firm has also announced a £120m loan facility with a consortium of banks, including Barclays, HSBC, NatWest, and Santander UK[3].
While Montagu, Bridgepoint, and NCC have all remained tight-lipped on the matter, one thing is for certain – it seems the datasphere is about to witness some serious rapid-fire maneuvering!
Bonus Bites:
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References:[1] Source: our website[2] Source: City sources[3] Source: NCC Group[4] Source: NCC Group press release, January 2024
- The clandestine war for Escode, a software escrow and verification services specialist within NCC Group, has potential valuations of £300m to £400m, making it a valuable target amidst private equity firms like Montagu and Bridgepoint.
- Despite the silence from Montagu, Bridgepoint, and NCC, the speculation surrounding a potential deal, coupled with the dramatic rise in NCC's share price, hints at a strategic power play in the datasphere, where private equity firms are aggressively positioning themselves.
- As NCC Group prepares for a probable sale of Escode, it is important to note the support from the financial sector, with a £120m loan facility secured from a consortium consisting of Barclays, HSBC, NatWest, and Santander UK, underscoring the company's stability and equity during this critical event.
