Amsterdam’s Invest-NL takes priority stake in Fox Crypto following NCC Group divestment: Know more

Amsterdam-based Invest-NL, a national financing and development institution, announced that it has acquired a priority stake in Fox Crypto at the request of the Dutch Ministries of Defence, Economic Affairs, and the Interior.

The transaction announcement comes after NCC Group’s divestment of the cryptographic arm Fox Crypto to Stockholm-based CR Group Nordic AB.

Rinke Zonneveld, CEO of Invest-NL, says, “A special transaction in a special time in a special company. Because Fox Crypto ensures with its super-smart algorithms in their advanced hardware that our secret data does not end up in the hands of third parties.”

The strategic investment is part of a broader package of measures intended to ensure the Netherlands maintains its position at the forefront of cryptographic innovation.

“By taking a priority share in the company, together with other agreements, we make sure the Netherlands stays ahead in cryptography,” Zonneveld adds.

The transaction follows an appeal by Defence Minister Ruben Brekelmans to safeguard critical cryptographic capabilities essential to national security.

According to Zonneveld, Invest-NL acted under Article 4.1.e of the Enabling Act, which permits state-directed investments in cases of essential economic interest for the State.

Additionally, Zonneveld noted that while Invest-NL acts on behalf of the state, it always conducts an “independent professional assessment” of such deals. “Because that’s what we were founded for,” he concludes.

Fox Crypto acquired by NCC Group

The decision by the Dutch government was initiated by the recent sale of Fox Crypto by the UK-based NCC Group.

Announced initially on August 1, 2024, and completed this month, the deal saw Fox Crypto transferred to CR Group Nordic AB, a Swedish firm specializing in encrypted communications and cybersecurity for mission-critical operations.

Based out of Delft, Fox Crypto develops high-assurance cryptographic products that secure sensitive data.

While the parent company Fox-IT remains part of NCC Group’s European operations, the divestment is said to align with NCC’s strategy to streamline operations and focus on its core cybersecurity services.