Cyber security firm NCC goes Dutch with key acquisition
IT security specialist NCC is set to acquire Netherlands cyber security firm Fox-IT for £93.5m.
Fox and its subsidiaries, headquartered in Delft, are a provider of high-end cyber security solutions comprising of cyber security products, managed security services, advanced threat intelligence, forensics and incident response, ‘Sovereign Cryptography’ and professional services.
Fox Group has a strong reputation and brand with a client base, including government security departments and global organisations.
Listed Manchester company NCC says the acquisition is a key strategic development in its aspiration to become the leading player in the expanding global cyber security market.
In the wake of the recent TalkTalk security breach, NCC says advanced persistent threats are driving security spending, with a focus on threat intelligence and ‘big data’ security analytics, beyond traditional security information and event management.
“The Fox Group provides NCC Group with a step change in its ability to provide contextual security analysis, advanced threat intelligence and online fraud detection,” a company statement said.
NCC intends to raise £126.3m (gross) through a firm placing and placing and open offer at the issue price of 275p per new ordinary share.
The deal has also been funded an £80m multi-bank revolving credit facility and a £30m term loan. The issue is being fully underwritten by Peel Hunt.
NCC Group chief executive Rob Cotton said: “This is a unique opportunity to acquire a leading, substantial European cyber security business that focusses on security analysis and threat intelligence; at a time that organisations globally are only now beginning to appreciate that they need to be proactive, not reactive, in dealing with cyber security.
“Fox has an impressive reputation and brand with a high quality client base, including government security departments and global organisations. The business also has a range of complementary professional and managed services and products which we aim to distribute internationally.
“The addition of Fox, with its quality management team, 250 technical security experts and personnel and high assurance cryptology and forensics capabilities, enables us to take a further substantial step towards our aspiration of becoming the leading player in the expanding global cyber security market.”
Lead financial adviser was Manchester-based Rickitt Mitchell (Stuart Moss and Alex Wilson). Law firm Eversheds’ Manchester and Amsterdam offices advised the company with a team led by Daniel Hall and Miriam Van Ee.
Deloitte provided financial due diligence on the transaction.
