Temasek to shell out $72.3m to buy cybersecurity firm D’Crypt

Signage for Temasek Holdings Pte is displayed in the lobby at the company's headquarters in Singapore. Photographer: Bryan van der Beek/Bloomberg

Singapore’s state investment firm Temasek Holdings is acquiring a 100 per cent stake in cybersecurity firm D’Crypt from local telco StarHub and D’Crypt’s founding shareholders for an initial aggregate cash consideration of S$100 million ($72.3 million).

According to a statement by StarHub, the telco will receive S$65 million for its 65 per cent stake in D’Crypt.

The founding members of the cybersecurity firm – Antony Ng, Chew Hwee Boon and Pang Liang Teck – will receive additional earn-out consideration of up to S$33.6 million ($24.3 million), subject to the achievement of agreed business and performance milestones.

As part of the transaction, Ensign InfoSecurity – a joint venture of Temasek and StarHub – will be issued preference shares and be fully entitled to the economic rights of D’Crypt. Following the transaction, StarHub will hold 60 per cent of the economic interest in D’Crypt through its shareholding and interest in Ensign.

The deal is expected to be completed by November, subject to the fulfilment of mutually-agreed conditions.

StarHub had acquired D’Crypt for S$122 million ($88.3 million) in 2017 and integrated it into its cybersecurity unit before it set up Ensign with Leone Investments, an indirect wholly-owned subsidiary of Temasek, last September.

Ensign now operates as one of Asia’s largest integrated pure-play cybersecurity firms. It was formed after a merger between cybersecurity firms Quann and Accel Systems & Technologies, which are subsidiaries of Temasek and StarHub, respectively.

“The acquisition of D’Crypt will provide Ensign with world-class engineering and cryptographic capabilities. This will enhance its ability to provide advanced cybersecurity solutions to secure enterprises and sectors against advanced threats in today’s digital economy.

“In parallel, D’Crypt will be able to leverage Ensign’s presence in Asia-Pacific to accelerate the growth of its business,” said Ensign CEO Yeoh Keat Chuan.