Singtel has acquired Trustwave, a cloud and managed security services provider
Singtel is to acquire IT security firm Trustwave in a move that will see the latter operate as the cybersecurity division of the Singaporean telecoms incumbent.
The deal will see Singtel acquire a 98 per cent stake in the American security services firm, which has an $850m equity value. Singtel said it paid around $810m for the company.
Following the acquisition more than 1,200 Trustwave employees will join Singtel to form a standalone cybersecurity services business unit.
Trustwave said it had three million business subscribers pre-acquisition and five security operations centres (in the US and Poland).
In canned remarks Trustwave chairman, chief executive and president Robert McCullen said: “This strategic partnership creates an unparalleled opportunity to combine Singtel’s robust information and communications solutions with Trustwave’s industry-leading security technologies and managed services platform to deliver cutting-edge solutions that will enhance our customer experience.”
“Singtel is the perfect partner for us as we continue to help businesses fight cybercrime, protect data and reduce security risk, and the Trustwave team is thrilled to become a part of such a prestigious and innovative organization,” McCullen said.
Singtel said the move will allow it to build a stronger presence in the American and European cloud services markets as it combines its existing enterprise IT assets it already leverages in the Asia Pacific region.
Chua Sock Koong, Singtel Group chief executive 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,” Koong said.
The acquisition will see Singtel move into an area that seems to be constantly on the up – cyberattacks like DDoS and man-in-the-middle attacks are becoming more frequent and cheaper to procure on the black market according to nearly every report out there, and other IT-focused telcos (i.e. Verizon) making moves to broaden their enterprise services to include cloud security and managed security services. According to Gartner the managed security industry is estimated to generate approximately $24bn by 2018, up almost 75 per cent from $14bn in 2014.