Private equity firms Montagu and Bridgepoint are eyeing a potential acquisition of Escode, a division of cybersecurity specialist NCC Group worth around £400m. The interest from these firms has sparked speculation about a potential bid for the software escrow and verification unit.

The possible deal for Escode is part of a series of strategic reviews conducted by NCC Group, with discussions about disposals dating back to January 2024. While no formal auction process has been initiated, the increased attention on Escode has led to a surge in NCC’s share price, rising by over 6% during trading.

NCC Group, a London-listed company, employs approximately 2,200 individuals globally and operates across Europe, North America, and Asia-Pacific. Recently, the company secured a £120m loan facility from a consortium of banks, including Barclays, HSBC, NatWest, and Santander UK.
Despite the growing interest from private equity players, NCC, Montagu, and Bridgepoint have refrained from commenting on the potential acquisition. The identities of other firms considering bids remain undisclosed, indicating a competitive landscape for Escode.
The London Stock Exchange, where NCC Group is listed, serves as a hub for financial activities and mergers. The current market dynamics suggest a trend towards consolidation and strategic acquisitions within the cybersecurity sector, reflecting the industry’s growth and evolving competitive landscape.
As technology continues to advance, the demand for cybersecurity solutions, including software escrow and verification services offered by Escode, is on the rise. This presents lucrative opportunities for investors looking to capitalize on the sector’s growth potential and diversify their portfolios.
Overall, the interest shown by prominent private equity firms in acquiring Escode highlights the value and market potential of NCC Group’s subsidiary. The outcome of these developments could have significant implications for both NCC Group and the broader cybersecurity industry, shaping future investment strategies and market dynamics.