NCC Group Plc (LSE: NCC), the Manchester-based information technology services provider, is acquiring a Cheshire company which carries out security testing for MasterCard and VISA.

It is paying £3m in cash for Meridian Services International Ltd, based in Warrington, which is certified by the credit card brands to conduct global audits of their security as well as advising credit card operators on manufacturing, data preparation and card personalisation.

NCC, whose main businesses are software escrow and assurance testing of IT systems, said the deal would complement its existing capabilities and “strengthens the current compliance offering within the Assurance Division”.

The initial consideration is £1.1m in cash, with two further payments of up to £1.9m based on performance related targets over the next 26 months. NCC said it would finance the purchase from existing debt facilities and cashflow.

It expects Meridian, which had gross assets of £381,502 at its year end last May, to contribute more than £600,000 of pre-tax profit on revenues of more than £1.8m in the year to May 2012, the conclusion of the earn out period, even without any investment by NCC.

Meridian, owned by its managing director Paul Johnson and Lynda Johnson, started in 2001 and employs a team of 13 including management who are staying with the business. Its customers include a number of leading companies that manufacture and personalise credit cards on behalf of MasterCard and VISA worldwide.

NCC said the company would be managed autonomously within its assurance testing division and will trade as Meridian Services International, a NCC Group company.

Rob Cotton, NCC Group chief executive, said: "We are delighted that Meridian, the most well established and respected card Audit Company working within the global card services market today has become part of the Group."

"This acquisition is an important step as Meridian's broad range of services, extensive expertise and credentials complement and strengthen the existing offerings for Information Security, Auditing and Compliance, an area where we have seen significant growth and where we have a strategy to become a market leader."

Stuart Moss of Rickitt Mitchell advised NCC Group on the acquisition of Meridian Services International.