SINGAPORE - Singapore's largest telco SingTel has acquired American security company TrustWave for US$810 million (S$1.1 billion) in its bid to become a global cybersecurity provider.
The deal is expected to close in three to six months time. It will also have to get approval from the US authorities on regulatory issues.
This acquisition adds to SingTel's digital armoury managed security services that helps organisations defend themselves against cybercrime and protect their data.
SingTel chief executive Chua Sock Koong said the increased frequency of cyber attacks is a growing concern for businesses who are seeking ways to protect their reputation, assets and customer trust from such online incursions.
"We're a leading infocom and communications provider. With TrustWave, we can now offer the best of breed solutions to deal with the threat landscape. Our goal is to become a global cybersecurity player", she said at a media briefing at the telco's headquarters Comcentre on Wednesday.
Mr Bill Chang, SingTel chief executive Group Enterprise, said TrustWave, based in Chicago, will add to SingTel's growing portfolio of cybersecurity solutions by providing managed security services.
"TrustWave and our current partnerships with cybersecurity firms like FireEye and Akamai, gives us better coverage on the ground of the cyber threats organisations face. This enables us to provide better cyber protection for our customers," he said.
SingTel's US$810 million deal gave it 98 per cent stake in Trustwave, with the remaining stake held by Trustwave founder, chairman and CEO Robert J. McCullen. TrustWave is valued at US$850 million.
Said Ms Chua: "We're very happy that Rob is investing in the company with us. We see it as a clear signal and his commitment to work with Singtel."