StarHub and HKBN on Wednesday announced they have signed an agreement in which StarHub is acquiring from HKBN a 60% stake in HKBN JOS (Singapore) and HKBN JOS (Malaysia), for S$15 million.
JOS SG and JOS MY have a track record of success of over 30 years respectively in the Information and Communications Technology (ICT) market. Today, they serve close to 1,500 government entities and blue-chip companies across industries such as Banking, Beverage, Electronics, Healthcare, Media, and Retail. JOS SG and JOS MY have deep expertise in delivering end-user computing, IT maintenance and IT infrastructure support services.
They have also been developing solutions and services that meet the changing needs of enterprise customers who are accelerating digital and cloud transformation as well as embracing hybrid work models.
Following StarHub’s investment in Strateq in July 2020, the acquisitions of JOS SG and JOS MY will accelerate the execution of its DARE+ strategy (next stage of five-year transformation), further strengthening the company’s ICT capabilities, enterprise solution offerings and customer footprint across Singapore and Malaysia.
The addition of JOS SG and JOS MY is also expected to harvest cost synergies in fixed operating costs and improved supply chain, between StarHub and JOS SG as well as between Strateq and JOS MY. Pro forma for these acquisitions for the nine-month period ended 30 September 2021, JOS SG and JOS MY will contribute S$86 million to StarHub’s Enterprise Business revenue, which would amount to S$610 million for the financial period. JOS SG and JOS MY collectively would contribute 14% of StarHub’s overall Enterprise Business revenue for the same period.
Nikhil Eapen, Chief Executive of StarHub
We intend to accelerate our Enterprise growth, by deepening our capabilities in Singapore as well as extending these enterprise digital services capabilities across the region. With JOS SG and JOS MY onboard to complement our prior acquisition of Strateq, our strategy is well underway.
NiQ Lai, HKBN Co-Owner & Group CEO & Almira Chan, HKBN Co-Owner & Chief Strategy Officer and Head of Beyond Hong Kong of HKBN JOS
On a strong foundation of technical excellence and silo-less teamwork, JOS SG and JOS MY delivered outstanding business results. We believe they will enjoy even greater synergy upside and growth potential to be backed by both StarHub and HKBN.
