Singtel shells out $1.1b to snap up cybersecurity firm Trustwave

It will acquire a 98% stake in the US-based firm.

Singtel revealed today that it will acquire a 98% equity stake in US-based cybersecurity firm Trustwave for a total consideration of $1.1b (US$810m).

Trustwave's Chairman and CEO, Robert J McCullen, will hold the balance 2% equity interest. The acquisition will expand Singtel’s existing portfolio of cloud based solutions.

The enterprise value of Trustwave is $1.15b (US$850 million). The aggregate consideration for the transaction excludes net debt, and is subject to working capital adjustments at closing.

Singtel expects the deal be EBITDA positive from the second year of acquisition, and earnings accretive from the third year.

The transaction is subject to the fulfilment of certain conditions precedent, including relevant approvals from regulatory authorities and other third parties, and is expected to complete in three to six months’ time.