StarHub has agreed to stump up as much as $122 million to acquire a company that provides cryptographic technology.
The acquisition of D'Crypt will improve the telco's capabilities in such areas as cryptographic and digital security, secure info-communication technologies (ICT) and Internet of Things.
These areas are vital in ensuring Singapore's vision of a robust, secure Smart Nation platform.
Led by defence technology prize winner Antony Ng, D'Crypt delivers leading edge cryptographic technology for high security applications, systems and products.
At the heart of the company is a world-class engineering team and a multi-disciplinary research and development (R&D) laboratory, StarHub said yesterday.
The telco also said in its statement that the laboratory has a strong track record of designing and producing innovative products, which have been successfully commercialised.
These include products used in such sectors as toll systems and wireless encrypted payment solutions.
Said StarHub's chief executive Tan Tong Hai: "D'Crypt's deep engineering and R&D expertise will allow us to develop new intellectual property and products which meet our customers' requirements as well as support Singapore's Smart Nation initiatives."
Dr Ng, D'Crypt's chief executive, said StarHub's ambition in cyber security and deep technology are among the crucial factors in cementing the deal.
Established in 2000, D'Crypt services clients in the military, security and government sectors across the globe.
Post-acquisition, the company will operate as a standalone StarHub subsidiary and continue to be led by its current management team.
The acquisition will be paid for in cash and funded using internal cash resources.
It will be carried out in two phases: 65 per cent on completion of Phase 1 and 35 per cent in Phase 2 by the first half of 2021.
Phase 1 is expected to close by early next year, subject to certain conditions being fulfilled.
When Phase 2 is completed, D'Crypt will be a wholly-owned subsidiary of StarHub.