NCC to sell Fox Crypto business for €77m

NCC surged on Friday after it announced the sale of its non-core Fox Crypto business for around €77m (£65.4m).

The tech-enabled global cyber security and software escrow business has agreed to sell Fox Crypto, part of its European cyber division in the Netherlands, to CR Group Nordic AB.

In the year to the end of May 2024, Fox Crypto contributed revenue and EBITDA of around £18m and £4m respectively. Therefore, the consideration represents a 2024 EBITDA multiple of 16.5x.

NNC noted that Fox Crypto was previously a standalone entity and said the disposal will not impact the group's continuing cyber capabilities.

The expected net proceeds of around €74m (£62m) will clear group net debt and facilitate organic and inorganic growth in the cyber security business, it said.

"The disposal represents a continuation of the group's transformation strategy to simplify the business and create a more focused cyber security business," NCC said. "Both our cyber and escode businesses provide the benefit of a portfolio effect to the overall group performance with clear future growth opportunities to enhance shareholder value."

At 0855 BST, the shares were up 8.6% at 157.40p.