Disposal of Non Core Fox Crypto

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated by the Market Abuse Regulation (EU) No.596/2014, as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

NCC Group plc

Disposal of non-core Fox Crypto business

NCC Group plc (LSE: NCC, "NCC Group" or "the Group"), a people-powered, tech-enabled global cyber security and software escrow business, announces that on 1 August 2024 it agreed the disposal of Fox Crypto B.V. part of its European Cyber division in the Netherlands, for total consideration of c.€77m (c.£66m) to CR Group Nordic AB, payable in cash on completion which is currently expected in October 2024 subject to customary conditions.

Fox Crypto B.V. contributed revenue and EBITDA of c.£18m and c.£4m respectively in the 12 months ended 31 May 2024. The consideration therefore represents a 2024 EBITDA multiple of 16.5x. Fox Crypto was previously a standalone entity, and the disposal will not impact the Group's continuing Cyber capabilities.

Group net debt at 31 May 2024 was £38.5m. The expected net proceeds of c.€74m (c.£62m) will clear Group net debt and facilitate organic and inorganic growth in the Group's Cyber Security business.

The disposal represents a continuation of the Group's transformation strategy to simplify the business and create a more focused Cyber Security business. 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.

IA Global Capital served as the exclusive financial advisor to NCC Group on this transaction.