Singtel, the biggest telecommunications firm in Southeast Asia with over 500 million mobile customers, will acquire Chicago-based cybersecurity company Trustwave in a deal worth $810 million. Founded in 1995, Trustwave developes software that helps business ward off cybercrime and protect their data.
Trustwave, which currently claims three million business subscribers, will continue to operate as a separate business after the deal closes in three to six months.
According to the terms of deal, Singtel will take a 98 percent equity stake in Trustwave, while Trustwave chairman and CEO Robert J. McCullen will hold on to the remaining two percent. Trustwave’s enterprise value is $850 million, while Singtel’s take is worth $810 million, not including net debt.
This is the latest in a string of major purchases by Singtel as it builds its fleet of services. Last year its mobile ad firm Amobee spent $235 million on ad-tech company Adconion and $150 million on data analysis firm Kontera Technologies.
In a statement, Singtel Group CEO Chua Sock Koong said that Trustwave, which already has offices in the Asia Pacific as well as Europe, will help Singtel become “a global player in cybersecurity” by growing its existing portfolio of cloud services and its managed security services business, which provides network security software for startups and large businesses.
“Our extensive customer reach and strong suite of ICT servies, together with Trustwave’s deep cybersecurity capabilities, will create a powerful combination and allow Singtel to capture global opportunities in the cybersecurity space,” said Chua.