UPDATE 1-NCC buys testing-services firm for 15 mln stg

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Fri Apr 23, 2010 2:41am EDT

* Acquisition to add to earnings

* To pay 7.75 mln stg initially

* To fund deal via debt facilities, cash flow (Add details)

April 23 (Reuters) - British computer-security firm NCC Group Plc (NCCG.L) said it acquired testing services provider SDLC Solutions Ltd for a maximum of 15 million pounds ($23 million) in cash.

NCC, which tests IT security and holds copies of software source code in escrow for companies and government departments, said the acquisition would add to its earnings.

For the year ending April 30, SDLC is expected to post normalised earnings before interest and taxes of 1.5 million pounds on revenue of 12 million pounds, NCC said.

SDLC's order book and sales pipeline for the next financial year was 11 million pounds, it said.

NCC said it would initially pay 7.75 million pounds for SDLC and would make two further payments of up to 7.25 million pounds in total if certain targets are met in the next 26 months.

NCC said the acquisition would be financed by its existing debt facilities and cash flow.

Shares of NCC closed at 380 pence on Thursday on the London Stock Exchange. ($1=.6522 POUND) (Reporting by Shivani Singh in Bangalore; Editing by Vinu Pilakkott)

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