SINGAPORE - StarHub has agreed to acquire a 51 per cent stake in a cyber security company for S$19.4 million.
The proposed acquisition of Accel Systems & Technologies will strengthen StarHub's cyber security portfolio, giving it the in-house capabilities to be an end-to-end provider of cyber security solutions and services, the mainboard-listed company said in a statement.
Accel is a cyber security systems integrator specialising in the provision of security solutions, consulting and managed security services.
It has a wide range of local and multinational clients including government agencies. Having been recognised two years in a row in the Fastest
StarHub chief executive Tan Tong Hai noted that Singapore's growing status as a Smart Nation means cyber security is an important aspect of the digital economy.
"With Accel, we will be able to offer the full spectrum of cyber security solutions, making us well placed to meet this demand," he said.
Following the acquisition, StarHub will expand the internal research and development abilities of its Cyber Security Centre of Excellence (COE) to develop and localise advanced cyber security solutions.
StarHub will also continue to work with its existing key partners to deliver services such as cyber threat monitoring.
Accel will operate as a standalone StarHub subsidiary and continue to be led by its current management team, helmed by its own chief executive, Ms Tammie Tham.
In addition, its offerings will now be enhanced by StarHub's cyber security COE.
The acquisition will be paid in cash and funded using internal cash resources.
The deal is expected to be completed by mid-June.
StarHub shares closed one cent lower at S$2.70. The announcement was made after market close.