TDR Capital emerges as lead suitor for NCC's Escode business

(Sharecast News) - Shares in NCC Group were trading lower on Monday despite weekend reports that private equity firm TDR Capital is nearing a deal to snap up NCC's software escrow division which has been under review for the past nine months. According to Sky News on Sunday, TDR is in "late-stage talks" to buy Escode for a reported £275m. Sky said TDR emerged as the lead runner among a "string of rival suitors", including Cap10, Platinum Equity and Montague Private Equity.

NCC, which put the division up for review in April 2025, said at the time of its annual results last month that a potential sale "would enable the group to consider a significant return of capital to shareholders over and above the recently announced share buy-back programme".

Escode generated £66.5m in revenues for NCC over the financial year ended 30 September, making up 22% of group revenues, and generating £30.9m of the group's £43.7m in adjusted EBITDA.

However, Shore Capital analysts said in a research note in October that they were valuing the Escode business at 10 times EBITDA, implying a sale price closer to £309m.

If NCC follows through on plans to offload Escode, it will become a pure-play cybersecurity business, having sold off the Fox Crypto division in March 2025.

NCC is simultaneously "review[ing] all options" for the cyber division - as announced last July - though this is independent from the Escode developments.

The cyber review has focused on "operational excellence and continuing our transformation journey as we ensure the operating model is aligned to support our clients and the underlying Cyber Security strategy", the firm said previously.

Despite speculation regarding the Escode deal, shares were down 1.4% at 137.84p.