NCC Group plc (LSE: NCC or “the Group”), the independent global cyber security and risk mitigation expert, has acquired Payment Software Company Inc. (“PSC”) for a maximum consideration of $18.75m in cash.

PSC is a leading provider of cyber security, payment and compliance-related consulting services to the global payments industry as well as the financial and retail sectors.

Highlights

• In addition to PSC’s cyber security practice, it expands the Group’s presence in the PCI (Payment Card Industry) sector and complements the existing UK PCI business

• PSC works with a broad range of blue chip clients at Board level including major financial institutions and other businesses across the payment sector

• Based in Silicon Valley, with presence in 29 states in the US

• Total consideration of up to $18.75m – initial payment of $15m (subject to completion adjustments), with two further payments of up to $1.875m each, over the next two years dependent on performance related targets

• In the year to 31 December 2015, PSC generated adjusted EBITDA of $1.6m on revenue of $9.5m, with approximately 85% of the revenue annually repeating

• Earnings enhancing and financed from existing debt facilities and internally generated cash flow

Rob Cotton, NCC Group Chief Executive, said:

“This earnings enhancing acquisition is part of our strategy to acquire services-led businesses in both Europe and North America, to complement our geographical and technical presence.

“PSC is one of a very few companies that can provide expert services and solutions to organisations that require specialist compliance, consulting and cyber security testing services in the substantial and growing global payments industry.

“The addition of PSC, with its quality management team, is an extremely good fit with the rest of our cyber security capabilities. Its Board level relationships provide us with an opportunity to improve our customer penetration and bolster our global capabilities, particularly in the US.”