StarHub and Temasek subsidiary enter joint venture to form cyber-security company

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StarHub said on Wednesday that it entered an agreement with Leone Investments, an indirect wholly owned subsidiary of Singapore state investment company Temasek Holdings, to form a joint venture cyber-security company.

Leone will hold 60 percent of the joint venture and StarHub will have the remainder, it said.

The new entity, Branded Ensign InfoSecurity, will merge StarHub’s Cyber Security Centre of Excellence, its subsidiary Accel Systems & Technologies (ASTL) and Temasek-owned Quann, in a deal that will form one of Asia’s largest cyber-security companies, it said in a filing to SGX on Wednesday.

ASTL is a cyber-security systems integrator specializing in providing security services, consulting and managed security services, while Quann is a regional cyber-security services provider with an extensive Asian footprint, the statement said.

The joint venture Ensign will use ASTL’s and Quann’s resources to provide professional services, systems integration and managed security services, and it will provide enhanced security for enterprises and critical infrastructure, it said.

Ensign will have a talent pool of around 500 analysts, consultants and researchers and will be based in Singapore, it said. It will initially support government and enterprise customers and is expected to generate more than S$100 million in revenue annually from cyber-security services, systems integration and managed services, it said.

StarHub transferred all of ASTL and its other cyber-security assets into the joint venture and will pay S$36 million in cash for its stake in Ensign, it said, adding the funding would be from internal cash resources.

Leone will inject all of Quann into the joint venture, the filing said.

The deal is expected to close by October, it said.

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