Chicago-based cybersecurity firm Trustwave Holdings said it has been acquired by a leading Asian communication company, Singtel Telecommunications, in a deal valued at about $810 million.
Trustwave President and CEO Robert J. McCullen will retain a 2 percent equity in the company. Trustwave is valued at about $850 million.
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.”
“We aspire to be a global player in cyber security,” added Chua Sock Koong, Singtel Group CEO, in a statement. “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.”
Singtel said it expects that Trustwave will continue to operate as a standalone business. Trustwave said it has three million subscribers in 96 countries and employs about 1,200 people in 26 countries, including a group of ethical hackers, SpiderLabs.
Singtel appears to be looking to strike now to stay ahead of the curve. At the end of its announcement, the company quoted projections of growth in the managed-security services industry, which is expected to grow 15 percent per year for four year starting in 2014–to reach $24 billion in 2018, according to Gartner.
“Cyber security threats are increasingly prevalent and pose significant reputation and economic risks to enterprises,” Singtel said. “Enterprise customers require effective solutions to protect their assets, respond to threats and ensure business continuity.”
Chad Hemenway is Managing Editor of Advisen News. He has more than 15 years of journalist experience at a variety of online, daily, and weekly publications. He has covered P&C insurance news since 2007, and he has experience writing about all P&C lines as well as regulation and litigation. Chad won a Jesse H. Neal Award for Best Single Article in 2014 for his coverage of the insurance implications of traumatic brain injuries and Best News Coverage in 2013 for coverage of Superstorm Sandy. Contact Chad at 212.897.4824 or [email protected].
