Singtel on April 8 signed an agreement to acquire a 98% equity interest in US-based Trustwave, a leading specialist in managed security services. Trustwave chairman and CEO, Robert J McCullen, will hold the balance 2% equity interest.
Trustwave is the largest independent managed security services provider in North America with presence in Europe and Asia Pacific. It has a broad portfolio of services across three main areas – threat management, vulnerability management and compliance management. Delivered through the unified cloud-based TrustKeeper® platform, Trustwave’s services help customers from a wide range of industries protect their IT infrastructure, applications and networks and respond to cyber threats.
Chua Sock Koong, Singtel Group CEO, said: “We aspire to be a global player in cyber security. We have established a strong security business in the region, both organically and through strategic partnerships with global technology leaders.”
“Our extensive customer reach and strong suite of ICT services, together with Trustwave’s deep cyber security capabilities, will create a powerful combination and allow Singtel to capture global opportunities in the cyber security space.”
The acquisition will expand Singtel’s existing portfolio of cloud based solutions and further entrench its leadership position in the managed services market. Singtel will leverage Trustwave’s threat intelligence, technology and talent to meet the growing demand for always-on managed security services in North America and the Asia Pacific region.
Trustwave, headquartered in Chicago, has over three million business subscribers, served by 1,200 employees in 26 countries, including an elite team of security experts in its forensic and threat research security unit, SpiderLabs. Trustwave provides its customers round-the-clock support in a dynamic cyber threat environment through its five security operation centres and nine engineering centres.
Singtel expects that post-acquisition, Trustwave will continue to operate as a standalone business unit and strengthen its position in the US and Europe. It will leverage Singtel Group Enterprise’s assets and market presence to broaden its overall security portfolio and address the fast growing emerging security market opportunity in the Asia Pacific region.
The enterprise value of Trustwave is US$850 million. The aggregate consideration for the transaction is approximately US$810 million for Singtel’s 98% equity interest, excluding net debt, and is subject to working capital adjustments at closing. The transaction is expected to be Ebitda-positive from the second year of acquisition, and earnings accretive from the third year.
