Optus parent company, Singapore Telecommunications (Singtel) (ASX:SGT), has entered into a conditional agreement to acquire managed security services provider, Trustwave.
Following the completion of the transaction, Singtel Enterprise Security will have 98 per cent of Trustwave’s share capital. Trustwave chairman and CEO, Robert McCullen, will hold the remaining two per cent equity interest. Post-acquisition, Trustwave will operate as a standalone business unit of Singtel.
The acquisition will enable Singtel to strengthen its information security capabilities globally, since Trustwave’s portfolio of services includes threat management, vulnerability management and compliance management.
It will be delivered to Singtel’s global customers through the unified Cloud-based platform, TrustKeeper, that aims to protect their IT infrastructure, applications and networks, and respond to cyber threats. This would also expand Singtel’s existing portfolio of Cloud-based solutions.
Singtel Group CEO, Chua Sock Koong, said the company decided on the acquisition as it aspires to be a global player in the cyber security space.
“We have established a strong security business in the region, both organically and through strategic partnerships with global technology leaders,” she said.
According to McCullen, this strategic partnership offers Trustwave an “unparalleled opportunity” to combine Singtel's information and communications solutions with its security technologies and managed services platform.
“Singtel is the perfect partner for us as we continue to help businesses fight cybercrime, protect data and reduce security risk," he said.
The enterprise value of Trustwave is US$850 million. The aggregate consideration for the transaction is approximately US$810 million for Singtel’s 98 per cent equity interest (excluding net debt) and is subject to working capital adjustments at closing.
The acquisition is currently subject to regulatory approvals and other customary closing conditions and is expected to complete in the next three to six months.