NCC buys rival for £15m

23rd Apr 2010 07:46

Testing software specialist NCC has bought rival SDLC Solutions Limited for up to £15m in cash. NCC says SDLC will enhance earnings and complement its information security and testing capabilities within its Assurance Division. It will now enable NCC Group to provide a wider range of information security assurance services. NCC will pay £7.75m upfront in cash, with two further payments of up to £7.25m in total against performance related targets over the next 26 months. The acquisition will be financed by debt. For the year ended 30 April 2010, SDLC is expected to report normalised EBIT of £1.5m on revenue of £12m and has gross assets of £3.8m. The order book and sales pipeline for the next financial year currently stands at approximately £11m.