StarHub announced that it is going to go ahead and buy the rest of cyber security systems integrator Accel Systems & Technologies, although it won’t become a wholly-owned subsidiary until 2020.
StarHub bought a 51% stake in Accel for S$19.3 million ($14 million) in cash at the end of May, saying the deal would beef up its cyber security portfolio and give it the in-house capabilities to be an end-to-end provider of cyber security solutions and services.
Now StarHub says it intends to buy the remaining 49% stake in two phases: 29.4% in Phase 2 – which is expected to close by the end of this month – and 19.6% in Phase 3, which will close close by the first quarter of 2020.
Subject to the fulfilment of certain mutually-agreed conditions, the maximum aggregate cash consideration for the two phases will be up to S$26.2 million ($18.9 million) – which means that all up, StarHub will pay around S$45.5 million for Accel.
The acquisition will be paid in cash and funded using internal cash resources.
“Accel’s cyber security solutions complement our network-based capabilities, making us well-placed to compete in major government and commercial cyber security tenders,” said StarHub CEO Tan Tong Hai in a statement. “In addition, this acquisition further demonstrates our confidence in growing the enterprise business as we execute on our growth strategy.”