Singapore state-owned investment company Temasek entered an agreement to acquire D’Crypt from StarHub and D’Crypt’s founding shareholders, the telco said in a filing to SGX Thursday.
Under the deal, StarHub and the founding shareholders — Antony Ng, Chew Hwee Boon and Pang Liang Teck — will sell their 100 percent interest in D’Crypt to Temasek for an initial payment of S$100 million in cash, with the telco due 65 percent of the amount, the filing said.
The deal also includes an additional earn-out payment of up to S$33.6 million payable to the founders for hitting performance metrics, StarHub said.
In addition, Ensign InfoSecurity will be issued preference shares in D’Crypt, and StarHub will end up holding a 60 percent economic interest in D’Crypt via its stake in Ensign, the filing said. D’Crypt will become an indirect subsidiary of Ensign, the filing said.
In September 2018, Ensign was created as a joint venture cybersecurity company in a deal which merged StarHub’s Cyber Security Centre of Excellence, its subsidiary Accel Systems & Technologies (ASTL) and Temasek-owned Quann.
StarHub will also pay S$60 million to acquire new Ensign shares, while Leone Investments, an indirect Temasek subsidiary, will also acquire new Ensign shares, the filing said.
“The acquisition of D’Crypt will provide Ensign with world-class engineering and cryptographic capabilities,” Yeoh Keat Chuan, CEO of Ensign, said in the statement.
“This will enhance its ability to provide advanced cybersecurity solutions to secure enterprises and sectors against advanced threats in today’s digital economy. In parallel, D’Crypt will be able to leverage Ensign’s presence in Asia Pacific to accelerate the growth of its business,” Yeoh said.
Peter Kaliaropoulos, CEO of StarHub, added the deal would let StarHub tap the combined expertise of both Ensign and D’Crypt for its enterprise, 5G and Internet of Things offerings.
The deal is expected to be completed by November, the filing said.
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