StarHub Ltd, a telecommunications firm listed on the SGX Mainboard, will acquire the remaining 49 per cent stake in Accel Systems & Technologies (ASTL) in a deal with an aggregate cash consideration of S$26.22 million ($18.9 million).
ASTL is a cybersecurity consultant and solutions provider incorporated in Singapore. As of 7 July 2017, it has an issued and paid-up share capital of S$2.3 million comprising 23 million shares.
The deal will be conducted in two phases: 29.4 per cent in Phase 2 and 19.6 per cent in Phase 3. Following the completion of the two phases, Accel will become a wholly-owned subsidiary of StarHub.
The acquisition will be paid in cash and funded using internal cash resources. Phase 2 is expected to close by July 2017 while Phase 3 is expected to close by Q1 2020.
In a stock exchange filing, Starhub explained: “The Phases 2 and 3 Acquisition is a strategic investment which will grow the Company’s cyber security capabilities through the consolidation of control of ASTL, a cyber security consultant and solutions provider. ASTL will complement the Company’s current cyber security capabilities and allow the Company to provide a full in-house suite of cyber security solutions to its customers.”
Tan Tong Hai, Chief Executive Officer of StarHub, said, “We are pleased to welcome Accel to the StarHub family. Accel’s cyber security solutions complement our network- based capabilities, making us well-placed to compete in major government and commercial cyber security tenders. In addition, this acquisition further demonstrates our confidence in growing the enterprise business as we execute on our growth strategy.”
StarHub offers a range of information, communications and entertainment services for both consumer and corporate markets and operates a mobile network that provides 4G and 3G services.
It also manages an island-wide HFC network that delivers multi-channel pay TV services (including HDTV, Internet TV and on-demand services) as well as ultra-high speed residential broadband services.
In addition, StarHub operates an extensive fixed business network that provides a wide range of data, voice and wholesale services.