NCC Group Sells Escode in Major Refocus on Cybersecurity

UK cybersecurity firm NCC Group has agreed to sell its Escode business in a deal valued at around £275 million, marking a significant strategic shift as the company sharpens its focus on core cyber resilience services. The sale will see Escode, which specialises in software escrow and verification, transferred to private equity firm TDR Capital. The transaction represents the final stage of a wider plan by NCC Group to exit non core operations, following a strategic review launched last year. Company leaders say the move will simplify the business and allow management to concentrate investment and resources on areas with stronger long term growth potential. Markets reacted positively to the announcement, with shares rising as investors welcomed clarity over the group’s future direction.

NCC Group said the disposal will leave it operating as a pure play cybersecurity company, at a time when demand for digital security services continues to rise globally. Chief executive Mike Maddison said the transaction would enable the company to accelerate growth in its core activities, following several years of restructuring. The group expects net proceeds of more than £260 million from the sale and plans to return a significant portion of that cash to shareholders. Alongside the announcement, NCC confirmed a share buyback programme of up to 10 percent of its issued share capital, signalling confidence in the streamlined business model and balance sheet strength after the deal completes.

The transaction remains subject to regulatory approvals and is expected to complete from late April. Once finalised, attention is likely to turn to the future shape of NCC Group’s remaining operations, including a previously flagged strategic review of its cybersecurity division. Analysts say the move reflects a broader trend among UK listed companies to refocus on core strengths amid tougher market conditions and investor pressure for clearer growth narratives. With cyber threats continuing to escalate across sectors, NCC Group will now be judged on its ability to convert rising demand into sustainable earnings growth as a more focused technology and security business.