Telecoms firm Singtel is to acquire privately held US security company Trustwave for $810m in a move that it said will benefit both businesses.
Singtel, or Singapore Telecommunications Limited, will make the most of its acquisition's security tools and technologies, while Trustwave, which exposed the Linux Ghost infection problem, is expected to improve its managed services offerings.
"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," said Trustwave chairman, CEO and president Robert McCullen.
"Singtel is the perfect partner for us as we continue to help businesses fight cybercrime, protect data and reduce security risks, and the Trustwave team is thrilled to become part of such a prestigious and innovative organisation."
Singtel, which is part of a $300m undersea cable project in partnership with Google, said the purchase of Trustwave will bring three million business users in 96 countries, a 1,200-strong collection of cyber experts and Trustwave's established SpiderLabs threat research operation.
Perhaps most importantly it also brings a "broad portfolio" of security intellectual property and 56 patents in varying stages of approval.
Singtel referred to a report from Gartner predicting a strong rise in the takeup of managed services, and a resulting improved market for those services, which will be worth $24bn by 2018.
"We aspire to be a global player in cyber security. We have established a strong security business in the region, organically and through strategic partnerships with global technology leaders," said Chua Sock Koong, Singtel CEO.
"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."
Trustwave will operate as a standalone business when the acquisition closes, which is expected to be within six months.
The company will look to increase its existing business and its focus on the Asia Pacific market. The management team remains in place and McCullen retains a two percent stake in the firm.
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