REG - NCC Group PLC - Strategic disposal of DetACT

NCCAnnouncement

21/12/2023 08:15

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RNS Number : 6053X  NCC Group PLC  21 December 2023

21 December 2023
 

 

NCC Group plc

Strategic disposal of DetACT

 

NCC Group plc ("NCC" or the "Group"), a people-powered, tech enabled global
cyber security and software escrow business, announces the disposal of DetACT,
an advanced preventive fraud detection solution for banks in Europe, to
DataExpert BV for a total gross consideration of €9.0m (the "Proposed
Disposal").

DetACT is a non-core offering within NCC's European Cyber Security division
serving European financial service clients. DetACT's new ownership will
provide a focused investment strategy for the business, to enable it to grow
and continue to innovate, delivering greater value for existing and future
clients.

Mike Maddison, NCC Group CEO, commented:

"The sale of DetACT is part of our ongoing Next Chapter strategy announced in
February 2023, which is to release non-core assets from our portfolio and
enable us to focus on growing our core business. The management team of DetACT
has built a profitable and stable business serving financial services clients
in Europe and I am confident that under the new ownership of DataExpert BV
they will be in a stronger position to invest in future growth."

Terms of the disposal

NCC Group, through its wholly owned subsidiary Fox-IT Holdings BV, announces
the sale of DetACT to DataExpert BV for a total cash consideration of €9.0m.
This is subject to a potential net working capital adjustment and normal
completion requirements and is payable on completion in January 2024. The net
proceeds (expected to be c.€8.3m) from the transaction will be used to pay
down net debt of the Group.

For the full year to 31 May 2023, DetACT generated revenue of c.€5.5m, made
an adjusted operating profit of c.€0.8m and had gross assets of c.€18m.
All 41 employees including the management team will transfer with the trade
and assets.

The disposal involves a Transactional Services Agreement to allow an efficient
transition of the business to DataExpert BV.

The disposal constitutes a Class 2 transaction for the purpose of the
Financial Conduct Authority's Listing Rules.

Enquiries:

 NCC Group (www.nccgroupplc.com (http://www.nccgroupplc.com) )  +44 (0)7824 412 405
 Yvonne Harley
 H/Advisors Maitland                                            +44 (0)20 7379 5151
 Sam Cartwright

About NCC Group plc:

 

NCC Group is a people-powered, tech-enabled global cyber security and
software escrow business.

 

Driven by a collective purpose to create a more secure digital future, c.2,200
colleagues across Europe, North America and Asia Pacific harness their
collective insight, intelligence, and innovation to deliver cyber resilience
for over 14,000 clients across the public and private sector globally.

 

With decades of experience and a rich heritage, NCC Group is committed to
developing sustainable solutions that continue to meet clients' current and
future cyber security challenges.

 

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