Manchester based IT security firm NCC Group has made its second swoop of the year with a £4m deal for a business which tests the computer networks of companies such as BAA, Orange, Flybe and SAGE. NCC has bought SecureTest, of Thame, Oxfordshire. The business was established in 2002 and employs 34 people.

It has more than 300 clients with a focus on local and central government and the finance and service sectors. In the year to June 30, the business generated revenues of £2.2m and pre-tax profits of £250,000.

NCC expects SecureTest to turn over more than £3m this year and make profits of more than £400,000.

NCC is paying £2.5m up front, with a further performance-related instalment of £1.5m due in October next year. The deal follows NCC's acquisition in January of Site Confidence, based in Dorking Surrey, for up to £9.1m.

NCC which moved from AIM to the stock market's Official List last month, says the addition of SecureTest will strengthen the group's position in the fast-growing web security and testing sector by almost doubling its capabilities.

Both companies have 'ethical hacking' operations which involve experts breaking into clients' IT networks to identify weaknesses.

Rob cotton, NCC Group's chief executive, said: "This earnings- enhancing acquisition is another important complementary development."

He said SecureTest's management team would stay on, and their technical and market experience should benefit NCC Group.

"The combination of our original ethical hacking business with Site Confidence plus SecureTest provide the group with a large and comprehensive range of capabilities and expertise."

NCC's shares were unmoved at 371.5p, valuing the business at £125.3m.

Last month, the company unveiled plans to recruit up to 50 staff to add to its 210 on Oxford Road, Manchester. Sales in the year to May 31 grew 22 per cent to £25.4m, and profits rose 23 per cent to £8.1m.

Stuart Moss of Rickitt Mitchell advised NCC Group on the acquisition of SecureTest.