NCC Group has bought the intellectual property management (IPM) business of US-based Iron Mountain in a deal worth £156 million.
Iron Mountain’s IPM arm provides software resilience services to more than 6,000 customers across the US and reported revenues of £23.3 million for 2020.
The move will provide “immediate scale to NCC Group’s software resilience business”, the company says, to “create a market-leading escrow business”.
NCC Group CEO Adam Palser said the deal will transform NCC’s software resilience business, making it a market leader, whilst delivering immediate financial and operational benefits to the whole of the Group.
“IPM will fit into our group perfectly and we are looking forward to welcoming our new colleagues and working alongside them. In addition, we can already see tremendous opportunities to grow the combined business by offering IPM’s blue-chip clients new services and support. Following completion, NCC Group will be a stronger and broader business with an even greater ability to support clients in the ceaseless struggle against cyber-crime in all its forms.”
Some of the deal will be financed by a £70 million share placing, the company says.
Part of the “compelling financial rationale” NCC Group sets out for the acquisition centres around recurring revenue, with NCC claiming it will bring an “enlarged recurring revenue base” because 80 percent of IPM’s revenue is recurring.
