Strategic disposal of DetACT

NCC Group plc ("NCC" or the "Group"), a people-powered, tech enabled global cyber security and software escrow business, announces the disposal of DetACT, an advanced preventive fraud detection solution for banks in Europe, to DataExpert BV for a total gross consideration of €9.0m (the "Proposed Disposal").

DetACT is a non-core offering within NCC's European Cyber Security division serving European financial service clients. DetACT's new ownership will provide a focused investment strategy for the business, to enable it to grow and continue to innovate, delivering greater value for existing and future clients.

Mike Maddison, NCC Group CEO, commented:

"The sale of DetACT is part of our ongoing Next Chapter strategy announced in February 2023, which is to release non-core assets from our portfolio and enable us to focus on growing our core business. The management team of DetACT has built a profitable and stable business serving financial services clients in Europe and I am confident that under the new ownership of DataExpert BV they will be in a stronger position to invest in future growth."

Terms of the disposal

NCC Group, through its wholly owned subsidiary Fox-IT Holdings BV, announces the sale of DetACT to DataExpert BV for a total cash consideration of €9.0m. This is subject to a potential net working capital adjustment and normal completion requirements and is payable on completion in January 2024. The net proceeds (expected to be c.€8.3m) from the transaction will be used to pay down net debt of the Group.

For the full year to 31 May 2023, DetACT generated revenue of c.€5.5m, made an adjusted operating profit of c.€0.8m and had gross assets of c.€18m. All 41 employees including the management team will transfer with the trade and assets.

The disposal involves a Transactional Services Agreement to allow an efficient transition of the business to DataExpert BV.

The disposal constitutes a Class 2 transaction for the purpose of the Financial Conduct Authority's Listing Rules.