Singtel locks in cyber security firm for $1.09b

Final price lower than what was announced; CEO retains 2 per cent stake in the business

Acquiring Trustwave expands Singtel's cloud-based solutions and builds on its goal to be a global managed security services provider.
Acquiring Trustwave expands Singtel's cloud-based solutions and builds on its goal to be a global managed security services provider.PHOTO: AGENCE FRANCE-PRESSE

Singtel has completed its purchase of a 98 per cent stake in a United States-based cybercrime-fighting business - for a slightly lower price than first announced.

The telco said yesterday that it had paid US$770 million (S$1.09 billion) for the firm, Trustwave .

The acquisition was initially priced at US$810 million, excluding net debt, when the deal was announced in April. The final price was arrived at after working capital adjustments. Trustwave chairman, chief executive and president Robert J. McCulen holds the remaining 2 per cent interest in the business.

Headquartered in Chicago, Trustwave helps businesses fight cybercrime, protect data and reduce security risk.

It is one of the largest such service providers in North America.

Singtel said acquiring Trustwave will expand its 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, information technology, applications and databases."

The managed security services industry is expected to grow rapidly 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 this year 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 in 26 countries.

Mr McCullen said: "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 its brand and operate as a stand-alone unit within Singtel Group Enterprise. It will also add six more security operations centres (SOCs) - four in North America, one in the 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.

A version of this article appeared in the print edition of The Straits Times on September 02, 2015, with the headline 'Singtel locks in cyber security firm for $1.09b'. Subscribe