Trustwave sells up to Singtel

Deal for security vendor worth about $810m and set to be completed in three to six months

Singapore Telecommunications Limited (Singtel) announced yesterday it has reached an agreement to acquire security vendor Trustwave for about $810m (£544m) in a move it claims will boost its security offering.

Privately held Trustwave was founded in 1995 and specialises in the payment card industry data security standard (PCI DSS) industry. The firm has completed a series of acquisitions in recent years and as a result has 1,200 employees and 2.7 million global customers.

Following the acquisition, Trustwave will become a standalone business unit of Singtel. It will continue to have its headquarters in Chicago and the existing management team will stay on, according to a statement.

Robert McCullen, Trustwave chief executive, said: "We are excited to join Singtel and to leverage its global presence and resources to accelerate worldwide adoption of our security solutions.

"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 organisation."

Post-acquisition, Singtel intends to combine Trustwave's managed security services portfolio with its information and communications technology and expand its cloud-based solutions to include security services.

The deal will see Singtel take on a 98 per cent share of Trustwave, with McCullen holding the remaining two per cent.

Chua Sock Koong, Singtel chief executive, said: "We aspire to be a global player in cybersecurity. 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 cybersecurity capabilities, will create a powerful combination and allow Singtel to capture global opportunities in the cybersecurity space."

News of the acquisition follows Bloomberg's report last month that security vendor Websense – a competitor to Trustwave – had entered into talks to be acquired by defence contractor Raytheon.

The Trustwave deal is still subject to closing conditions and regulatory approvals and is expected to be completed in three to six months' time.