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StarHub to nab 51% stake in cyber security firm for $19.4m
It eyes strengthening is cyber security portfolio amidst global attacks.
Singapore telco StarHub announced its planned acquisition of a 51% stake in ASTL, a cyber security solutions provider for $19.38m.
According to RHB, ASTL is from an Indian-based IT services provider Accel Frontline Ltd and the acquisition is to strengthen StarHub's cyber security portfolio and capabilities, allowing it to offer end-to-end cyber security solutions and services.
"The acquisition is most timely to capitalise on the growing threat of cyber-attacks globally. It also comes hot on the heels of the WannaCry ransomware attack, which has impacted more than 150 countries including key assets of government agencies and enterprises," RHB said.
RHB said this would strengthen StarHub’s fixed network services/enterprise suite of managed services (17% of group revenue) where cyber security solutions form an inherent part of the overall service/product offerings.
"StarHub would also benefit from ASTL’s portfolio of customers including key multinational companies and government agencies, allowing for cross-selling potential, in our view. The acquisition is also expected to complement StarHub’s investments in smart nation projects and the eventual rollout of 5G networks," the brokerage firm said.
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