Shares of Manchester-based cyber security company NCC Group rose as much as 16% on Thursday after it announced it agreed to acquire the Intellectual Property Management business (IPM) of Iron Mountain for £156 million in cash.

IPM is a software escrow platform in the United States.

For the 12 months ended December 31, 2020, IPM reported revenues of $32.9 million (£23.3 million), of which escrow services comprised 86% with verification services accounting for the remaining 14%.

In a share placing connected to the transaction, NCC Group said it sold 27.9 million new shares to existing and new investors at £2.60 per placing share, a 3.4% discount to the prevailing middle market price, raising gross proceeds of £72.6 million.

NCC Group CEO Adam Palser said: “This acquisition will transform NCC Group’s Software Resilience business, making it a market leader, and deliver immediate financial and operational benefits to the whole of the group.

“The IPM Business shares many similarities with our own Software Resilience business, including a commitment to providing exemplary service for clients.

“There are tremendous opportunities to grow the combined business by offering IPM’s blue-chip clients the choice of new services and support.

“Following completion, NCC Group will be a stronger and broader business with an even greater ability to support clients in the ceaseless struggle against cyber-crime in all its forms.”