Montagu Private Equity and Bridgepoint are among the firms eyeing a potential acquisition of Escode, a cybersecurity subsidiary of London-listed NCC Group, in a deal that could be valued between £300m and £400m, according to Sky News.

Escode, which provides software escrow and verification services, has drawn interest from several private equity firms, though a formal auction has not yet been launched. The potential divestment comes amid ongoing strategic reviews by NCC Group, which has also explored the sale of other business units in recent months.

News of buyout interest drove NCC’s share price up over 6%, despite the firm’s decision in early 2024 to pause a restart of the strategic review of Escode. NCC, which has a market capitalisation just over £440m, employs approximately 2,200 people across Europe, North America, and Asia-Pacific.

In parallel, the group announced a new £120m loan facility with a banking syndicate including Barclays, HSBC, NatWest, and Santander UK, adding flexibility to its capital structure as it assesses its portfolio.

NCC, Montagu, and Bridgepoint have all declined to comment on the potential deal.

Source: Sky News