NCC Group has announced that it has entered into an agreement to acquire Fox-IT Holding for €133.25m. Fox-IT is a Dutch headquartered, leading provider of high-end cyber security solutions. NCC Group has announced a placing of £126.3m at 275p and £110m of new debt facilities to fund both the Fox-IT acquisition and provide the firepower for further acquisitions. Fox-IT brings increased recurring revenue to the group as well as increasing its cybersecurity capabilities. 5.4x historic revenue looks expensive and the acquisition will not be earnings enhancing in its own right until FY’18. NCC Group remains one of a limited number of ways to play the key cybersecurity theme however at the shares look up with events for now.
