Fox Crypto acquisition raises Dutch concerns over sovereignty and cryptographic control: Govt asks Invest-NL to acquire priority share

NCC Group, the global cybersecurity specialist and parent company of Fox-IT, has officially completed the sale of Fox Crypto to CR Group Nordic AB.

Based out of Stockholm, CR Group provides encrypted communications, cybersecurity, and hardened networks to safeguard mission-critical operations.

The transaction follows the initial acquisition announcement made on August 1, 2024.

Fox Crypto develops and maintains high-assurance cryptographic products to secure and contain sensitive information. 

The divestment is part of NCC Group’s strategy to streamline operations and channel investments into its core cybersecurity services.

25th anniversary

Fox-IT, which recently marked its 25th anniversary, remains a cornerstone of NCC Group’s European operations.

Based in Delft, the company continues to play a leading role in the Dutch and Benelux cybersecurity landscape, particularly in managed security services and incident response.

Fox-IT collaborates with law enforcement and international bodies, including through initiatives such as Project Melissa.

As part of its ongoing transformation, NCC Group recently introduced two global practice areas—Identity Access Management and Operational Technology—and announced strategic partnerships with Horizon3.ai and CrowdStrike.

Dutch government steps In

However, the sale of Fox Crypto has garnered a significant response from the Dutch government due to growing concerns about digital sovereignty and the protection of national security interests.

In a public statement on LinkedIn, Jeroen van der Vlugt, Chief Information Officer at the Dutch Ministry of Defence, highlighted the critical importance of retaining sovereign capabilities in cryptography.

Referring to a letter sent to parliament by Defence Minister Ruben Brekelmans, van der Vlugt wrote: “Sovereignty? It’s the buzzword of the moment. Everyone talks about it, but no one knows what it means. Let alone how to interpret it. To protect your secrets, you need cryptography. Think of the Enigma machines in World War II. Those Enigma machines still exist but are now super-smart algorithms in very advanced hardware. These machines ensure that what needs to be kept secret remains secret. That is crucial.”

To secure the Netherlands’ position in cryptographic innovation, the Ministry of Defence, along with the Ministries of Economic Affairs and the Interior, has asked Invest-NL to take a priority share in Fox Crypto BV.

“This, in combination with a number of other measures, ensures that the Netherlands remains at the forefront in the field of cryptography,” adds van der Vlugt

“Most important message: sovereignty starts with protecting your (secret) data… And so cryptography is crucial,” he concludes. 

NCC Group: Cybersecurity specialist

Based out of Manchester, NCC Group is a global cyber security specialist that assesses, develops, and manages cyber threats.

Currently, the company works with over 14,000 customers to protect their most critical assets from ever-changing threats.

NCC Group employs around 2,400 professionals across 12 countries, with a strong presence in North America, Europe, and the UK and a rapidly growing footprint in the Asia-Pacific region, including Australia, Japan, and Singapore.

Mike Maddison, NCC Group CEO, comments, “We are laser-focused on delivering our strategy to simplify and focus the Group on world-class full-service cyber resilience. Completing the sale of Fox Crypto is an important step in enabling further investment and growth for Fox-IT and our global cyber security business. Fox-IT recently celebrated 25 years at the heart of the Dutch and Benelux cyber industry and is deploying that cyber security heritage to create a more secure digital future. We are enormously thankful to our departing colleagues at Fox Crypto and wish them our very best as they pursue opportunities under new ownership.”