Singapore Telecommunications (Singtel) has announced the acquisition of US cyber security firm Trustwave in an $810 million (£545 million) deal.
Singtel, one of the world’s top 30 largest mobile operators, has a combined mobile subscriber base of approximately 500 million including its core business and subsidiaries.
Earlier today, Singtel confirmed that it will purchase a 98 per cent stake in Trustwave, with existing chairman and CEO Robert McCullen retaining a two per cent share. The deal will be completed via a combination of debt and cash and will continue Singtel’s expansion beyond the traditional telecoms industry.
Since 2011 and the founding of the company’s Innov8 investment arm, Singtel has bought stakes in a number of other companies in diverse sectors. Trustwave primarily targets North American customers, but does have a presence in Europe and Asia, and will help Singtel expand its business into the cyber security market. However, Trustwave will continue to operate as a standalone organisation.
Singtel’s CEO Chua Sock Koong believes that the acquisition will add genuine value to the company’s security portfolio.
“We aspire to be a global player in cyber security. We have established a strong security business in the region, both organically and through strategic partnerships with global technology leaders,” he said.
“Our extensive customer reach and strong suite of ICT services, together with Trustwave’s deep cyber security capabilities, will create a powerful combination and allow Singtel to capture global opportunities in the cyber security space.”
International Business Times reports that the managed security industry is set grow 15 per cent year-on-year between now and 2015, reaching a value of $24 billion. With such a promising outlook for the industry, the Trustwave acquisition could prove a shrewd business deal for Singtel.
Image Credit: Jeffrey James Pacres