SingTel to buy TrustWave for $810m

Enterprise Innovation editors
09 Apr 2015

SingTel will acquire a 98% stake in US-based managed security services provider Trustwave as part of efforts to strengthen its security offerings.

Trustwave, has a portfolio of services across three main areas – threat management, vulnerability management and compliance management, all of which are delivered through its cloud-based TrustKeeper platform. The services are aimed at helping customers protect their IT infrastructure, applications and networks and respond to cyber threats.

“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,” said SingTel Group CEO Chua Sock Khoong.

Singtel hopes the acquisition will expand SingTel’s existing portfolio of cloud-based services and contribute toward enhancing its position in the managed services market. SingTel is expected to use Trustwave’s products to meet growing demand for managed security services in North America and the Asia Pacific.

Chicago headquartered Trustwave has more than 3 million subscribers and 1,200 employees in 26 countries. Its employees include a team of security experts in a security unit named SpiderLabs, which specializes in forensic and threat research. The security firm runs five security operation centers and nine engineering centers.

Post-acquisition, Trustwave will continue to operate as a standalone business unit while harnessing SingTel Group Enterprise’s assets and market presence to address the fast growing security market in the Asia Pacific.

The enterprise value of Trustwave is $850 million. The aggregate consideration for the transaction is approximately $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 earning accretive from the third year.

Trustwave Chairman and CEO Robert J McCullen will hold the balance 2% equity interest.

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