Singtel to pay $1b for cyber-security firm
SINGTEL is buying United States-based cyber-security firm Trustwave for US$810 million (S$1 billion), marking its biggest acquisition outside the main telecoms sector.
The deal comes as the managed security services industry - which refers to the management of an information technology system by a third party - is forecast to grow 15 per cent annually from last year to reach US$24 billion in 2018, according to IT consultancy Gartner.
"Today's acquisition of Trustwave is a critical step to capturing global opportunities in the cyber-security market," Singtel chief executive Chua Sock Koong told reporters at a briefing.
Singtel will buy a 98 per cent equity stake in the company from a group of investors assembled by Trustwave's chairman and CEO, Robert McCullen.
He will hold the remaining two per cent.
Trustwave will continue to operate as a stand-alone business unit, Singtel said.
Trustwave, which has over three million business subscribers, offers a range of services, including scanning of databases, risk identification and payment compliance.
Trustwave reported revenue of US$216 million last year.
Singtel expects the deal, which will be funded through debt and cash, to be completed in three to six months.