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Singtel to buy Australian cyber security firm for A$23.3 million
SINGTEL'S Australian subsidiary has inked a deal to buy a privately held cyber security firm incorporated in Victoria state, which will be integrated into the group's Trustwave cyber security arm.
Optus Cyber Security will pay up to A$23.3 million (S$22.9 million) for three-year-old Hivint, subject to earn-out targets and adjustments such as working capital and cash at closing, in a conditional agreement announced by the group on Wednesday evening.
The valuation was reached on a willing buyer, willing seller basis that assessed Hivint's assets and business prospect, said Singtel. Hivint had net tangible assets of roughly A$2.5 million, based on unaudited financial statements as at June 30.
Arthur Wong, chief executive officer of Trustwave and Singtel's chief executive of global cyber security, said in a media statement: "Australia's business leaders already leveraging Hivint as a preferred security advisor now have direct access to the complete Trustwave portfolio of security solutions, managed security services and advanced education programs."
Meanwhile, Optus business managing director John Paitaridis said that Hivint's reputation "will strengthen Optus' position as one of Australia's leading cyber security service providers and trusted adviser to both government and enterprise customers".
The transaction depends on certain conditions precedent, such as getting the relevant regulatory approvals.
Singtel ended lower by S$0.04 or 1.26 per cent, to S$3.14, before the announcement.