SINGAPORE - Singapore Telecommunications (Singtel) said Tuesday (Sept 1) that it has completed its purchase of a 98 per cent stake in US-based network security services provider Trustwave for a lowered price of US$770 million (S$1.09 billion) .
The acquisition was initially priced at US$810 million, excluding net debt, when the deal was announced in April. The final price was arrived after working capital adjustments.
Trustwave chairman, chief executive and president Robert J McCulen holds the remaining 2 per cent interest in Trustwave.
Headquartered in Chicago, Trustwave helps businesses fight cybercrime, protect data and reduce security risk. It one of the largest such service providers in North America.
Singtel said acquiring Trustwave will expand its line-up of cloud-based solutions and build on its vision to be a global managed security services provider.
Said Mr Bill Chang, chief executive of Singtel Group Enterprise: "Singtel will leverage Trustwave's strong market position in North America and its deep capabilities to offer differentiated security solutions to our customers."
He added: "This acquisition enables us to meet the increasing demand of enterprises worldwide for a trusted partner to secure their networks, mobility platforms, devices, IT (Information Technology), applications and databases."
The managed security services industry is expected to grow rapidly in future due to the increasing frequency and complexity of cyber-attacks. According to the 2015 Gartner Information Security Forecast report, the global managed security services will expand from US$15 billion (S$21.15 billion) in 2015 to US$27 billion in 2019.
The acquisition enables Singtel to gain a number of Trustwave's cyber security assets and capabilities such as security services for threat, vulnerability and compliance management, more than three million business subscribers in 96 countries and more than 1,200 security-focused employees located in 26 different countries.
Said Mr McCullen: "Joining Singtel gives us the ability to leverage its global presence and resources to accelerate worldwide adoption of Trustwave managed security services and technologies."
Trustwave will maintain the company's brand and operate as a standalone unit within Singtel Group Enterprise. It will also add six more Security Operations Centre (SOCs) - four in North America, one in Asia Pacific and one in Europe - to Singtel's existing SOC in Singapore and planned SOC in Australia.
This increase in global managed security services capacity will enhance Singtel's ability to provide real-time, round-the-clock support for enterprise customers worldwide.