Singapore Telecommunications Limited, also known as Singtel, is going to buy Trustwave, information Technology Company situated in the United States. According to reports, Singtel, which is Southeast Asia's largest telecommunications operator, will but Trustwave for about $810 million. It is the company's biggest acquisition outside the main telecoms sector.
The deal proves that the telecommunications company has decided to move away from being a pure-play telecoms company. Singtel pursues expansion in sectors like digital life that includes digital advertising and mobile video.
After the acquisition deal, Trustwave will operate as a standalone business unit of Singtel. According to reports, the deal will also strengthen the company's position in Europe and North America. As per Singtel's plan, it will buy about 98% equity stake in the company. The remaining stake will be held by Trustwave's chairman and CEO, Robert McCullen. The reports stated that the deal will be funded through debt and cash.
Currently, the Chicago headquartered Trustwave has more than three million business subscribers in more than 95 countries. The main job of the company is to help businesses deal with cyber crime, protect data and reduce security risk.
Singtel, which has headquarters in Singapore, has presence in Africa, Asia and Australia. The company has more than 500 million mobile customers in 25 nations, including India, Bangladesh, Thailand, Indonesia and Philippines. About three years ago, the company had acquired a digital advertising firm, Amobee for about $321 million. The company has also bought substantial stakes in a number of telecommunications companies, including Indonesia's Telkomsel and India's Bharti Airtel.
As per a report by Gartner Information Security, in 2018, the security services industry could reach about $24 billion, up about 75% from 14 billion in 2014.The sector is expected to grow in coming years.