A pack of private equity firms are circling one of the main subsidiaries of NCC Group, the London-listed cybersecurity specialist.
Sky News has learnt that Montagu Private Equity and Bridgepoint are among the buyout firms which are interested in bidding for Escode, which specialises in software escrow and verification services.
City sources said a deal for Escode could be worth between £300m and £400m, while NCC Group’s entire market capitalisation on Monday afternoon was just over £440m.
Several other private equity firms are also said to be interested, although a formal auction is not underway and the identities of the other parties was unclear.
Shares in NCC rose by more than 6% during the trading session amid market speculation about a takeover bid or sale of parts of the company.
The buyout firms’ interest in Escode follows a string of reviews by NCC about potential disposals.
In January 2024, the group said its board had “decided not to restart the strategic review of Escode at this juncture”, while other parts of the company have also been the subject of exploratory discussions with possible buyers.
NCC employs about 2,200 people across Europe, North America and Asia-Pacific.
It announced on Monday that it had signed a £120m loan facility with a syndicate of banks comprising Barclays, HSBC, NatWest and Santander UK.
NCC, Montagu and Bridgepoint all declined to comment.
