SINGAPORE - StarHub has agreed to acquire a company that provides cryptographic technology for as much as S$122 million.
The acquisition of D'Crypt will enhance the telcos solutioning capabilities in areas such as cryptographic and digital security, secure info-communications technologies (ICT) and Internet of Things (IoT) - areas vital to Singapore's vision of a robust, secure Smart Nation platform.
Led by Defence Technology Prize winner Dr 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 multidisciplinary research and development (R&D) lab with a strong track record of designing and producing innovative products which have been successfully commercialised, StarHub said in a statement on Dec 15.
This has allowed D'Crypt to establish market-leading strengths in encrypted communications, high performance computing, secure IoT, and vulnerability and threat analysis, with proven products implemented in sectors such as toll systems and wireless encrypted payment solutions, StarHub added.
"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," said StarHub chief executive officer Tan Tong Hai.
Dr Ng, who is D'Crypt chief executive officer, said StarHub's ambition in cyber security and deep technology, its clear commitment to customers and partners, and the value it places on the team in D'Crypt had been crucial in cementing the deal.
"In addition to the significant alignment in our complementary capabilities, being part of StarHub will allow D'Crypt to deliver more innovative products and systems for ever more challenging applications and discerning customers," he said.
Established in 2000, D'Crypt services clients in the military, security and government sectors across the globe.
Its largest project to date is the d'Cryptor ZE, the computational and security core in the Electronic Road Pricing in-vehicle unit which is currently in use in Singapore's road congestion management system.
Post-acquisition, D'Crypt will operate as a standalone StarHub subsidiary and continue to be led by its current management team.
The acquisition will be conducted in two phases; 65 per cent upon completion of Phase 1 and 35 per cent in Phase 2 by the first half of 2021.
Following the completion of Phase 2, D'Crypt will be a wholly-owned subsidiary of StarHub.
The acquisition will be paid in cash and funded using internal cash resources.
Phase 1 is expected to close by early 2018, subject to the fulfilment of mutually-agreed conditions.