Singapore-based operator Singtel, which also has mobile assets in six other Asian markets, announced an $810 million deal to acquire a 98 per cent stake in Chicago-based Trustwave, a provider of managed security services.
Trustwave is the largest independent managed security services provider in North America, with a presence in Europe and Asia Pacific, the companies said in a statement. Trustwave’s portfolio covers threat, vulnerability and compliance management.
Chua Sock Koong, Singtel Group CEO, said the acquisition will expand the company’s existing portfolio of cloud-based security products and enhance its leadership position in the managed services market. She said SingTel has established a strong security business in the region, both organically and through strategic partnerships.
“Our extensive customer reach and strong suite of ICT services, together with Trustwave’s deep cybersecurity capabilities, will create a powerful combination and allow Singtel to capture global opportunities,” Chua said.
Singtel expects Trustwave will continue to operate as a standalone business unit and strengthen its position in the US and Europe.
Trustwave has more than three million business subscribers, served by 1,200 employees in 26 countries. Its forensic and threat research security unit, SpiderLabs, employs a team of security experts.
Trustwave chairman and CEO, Robert McCullen, will hold the remaining 2 per cent equity interest.
The transaction is subject to certain conditions, including the relevant approvals from regulatory authorities and other third parties, and is expected to complete in three to six months.
SingTel said the transaction is expected to be EBITDA positive from the second year of acquisition and earnings accretive from the third year.