Singapore telco Singtel has acquired US-based information security firm Trustwave for US$810 million in its bid to strengthen its cyber security capabilities globally.
In a news release on Wednesday (Apr 8), Singtel said it will own a 98 per cent stake, while Trustwave chairman and CEO Robert J McCullen will hold the balance 2 per cent equity interest.
Following the acquisition, Trustwave is set to continue operating as a standalone business unit, while leveraging Singtel Group’s assets and marketing presence to broaden its portfolio in the Asia Pacific region.
The acquisition will expand the telco’s existing portfolio of cloud-based solutions, said Singtel, adding that it will leverage Trustwave to meet the demand for managed security services in North America and the Asia Pacific region.
The enterprise value of Trustwave is US$850 million, and the transaction is expected to be EBITDA positive from the second year of acquisition, said Singtel.
Singtel added that the transaction is subject to approval from regulatory authorities and other third parties, and is expected to be completed in three to six months.