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StarHub to acquire remaining 49% stake in Accel for up to S$26.2m
SINGAPORE telco StarHub on Friday announced an agreement to acquire the remaining 49 per cent stake in local cybersecurity services provider Accel Systems & Technologies Pte Ltd. StarHub acquired 51 per cent stake in Accel for S$19.38 million in May.
The remaining acquisition will occur in two phases: 29.4 per cent in Phase 2 and 19.6 per cent in Phase 3. Phase 2 is expected to close by July 2017 while Phase 3 is expected to close by the first quarter of 2020.
Subject to the fulfilment of certain mutually-agreed conditions, the maximum aggregate cash consideration for the two phases will be up to S$26.2 million. The acquisition will be paid in cash and funded using internal cash resources.
Tan Tong Hai, chief executive officer of StarHub, said: "We are pleased to welcome Accel to the StarHub family. Accel's cybersecurity solutions complement our network-based capabilities, making us well-placed to compete in major government and commercial cybersecurity tenders."
He added: "In addition, this acquisition further demonstrates our confidence in growing the enterprise business as we execute our growth strategy."