StarHub announced an agreement to acquire the remaining 49% stake in Accel Systems & Technologies, a leading cyber security systems integrator.
This move is expected will strengthen StarHub's cyber security portfolio, giving it the in-house capabilities to be an end-to-end provider of cyber security solutions and services.
StarHub will be taking a 29.4 per cent stake this month, and the remaining 19.6 per cent to be completed by the first quarter of 2020. Following the completion of the two phases, Accel will be a wholly-owned subsidiary of StarHub.
Subject to the fulfilment of certain mutually-agreed conditions, the maximum aggregate cash consideration for the two phases will be around S$26 million. The acquisition will be paid in cash and funded using internal cash resources.
Tan Tong Hai, CEO, Starhub
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.