Singtel (SGX:Z74) has completed its acquisition of US cyber security firm Trustwave, having agreed the deal on 8 April.
Singtel (SGX:Z74) has completed its acquisition of US cyber security firm Trustwave, having agreed the deal on 8 April.
The US$770m consideration is US$40m less than the sum initially announced. The Singapore giant, advised by Evercore, said this reflected “working capital and other adjustments”.
Singtel now owns 98% of the business, with the remaining 2% retained by Trustwave chairman and CEO Bob McCullen (pictured).
Trustwave had received early-stage funding from FTV Capital and angel investor Dick Kiphart, a partner and senior advisor at investment firm William Blair.
Explaining the rationale for the transaction, Singtel’s group enterprise CEO Bill Chang said: “Trustwave can leverage Singtel’s assets and extensive market presence to broaden its overall security portfolio and address the fast-growing security market opportunity, especially in the Asia Pacific region.”
Trustwave, which will remain a standalone business, has announced plans to expand into Asia-Pacific by building operation centres in Singapore and Australia. The firm will utilise Singtel’s “massive Asia Pacific network backbone” and its existing security operations centre to support its operations, the companies said in a statement.
Singtel expects the deal to be EBITDA positive from the second year of acquisition, and earnings accretive from the third year. The operator has previously expressed a desire to be a global player in cyber security.