Singtel unit to acquire ARQ for A$290M

Singtel retail outlet at Tiong Bahru PlazaSingtel retail outlet at Tiong Bahru Plaza; photo taken pre-Covid

NCSI Holdings (NSC), a wholly owned subsidiary of Singtel, has entered a deal to acquire Row TopCo, the holding company of Australia-based digital consultancy ARQ Group, for a total A$290 million in cash, the telco said in a filing to SGX Monday. 

The consideration for ARQ, which specializes in mobile apps, cloud and data analytics, will comprise A$265 million to be paid at the deal’s completion and deferred consideration and earn-out amounts of A$25 million, with the potential for additional payments subject to performance targets over a three-year period, the filing said.

The deal is subject to regulatory approvals and is expected to be completed by May 2022, Singtel said.

In a separate statement, NCS said ARQ’s revenue is expected to reach A$118 million by end-2022, up 38 percent on-year. 

ARQ’s clients include ANZ Bank, AustralianSuper, Domino’s, Qantas, NAB, Queensland Government’s Department of Education and others, the filing said.

ARQ is NCS’ fourth Australia investment over the past 15 months as it expands in the country, the filing said, noting it acquired the country’s largest privately owned IT services company Dialog recently, after investing in cloud consultancy Riley, which specialises in Google cloud applications, and a majority investment in cloud transformation specialist Eighty20 Solutions, which specialises Microsoft platforms.

“Taken together, our four investments to date have given us the necessary scale, capabilities and credibility to compete as a regional digital powerhouse as we help governments and enterprises in Singapore and Australia achieve their digital transformation goals,” Ng Kuo Pin, CEO of NCS, said in the statement.

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