Apr 09, 2015

    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.