StarHub to Acquire 51% stakes in Accel Systems & Technologies
StarHub Ltd today announced an agreement to acquire a 51% stake in Accel Systems & Technologies Pte. Ltd. for a total consideration of S$19,380,000. The proposed acquisition will strengthen StarHub’s cyber security portfolio, giving it the in-house capabilities to be an end-to-end provider of cyber security solutions and services.
Accel is a cyber security systems integrator specialising in the provision of security solutions, consulting and managed security services. An established name in the cyber security sector, Accel services a wide range of local and multinational clients including government agencies. Having been recognised two years in a row in the Fastest Growing 50 list of companies in Singapore, it is leading the development of the cyber security ecosystem in Singapore with partnerships with global security companies and its involvement in government initiatives such as Cyber Security Associates and Technologists programme.
Mr Tan Tong Hai, Chief Executive Officer of StarHub, said: “Singapore’s growing status as a Smart Nation underscores the importance of cyber security in today’s digital economy. With Accel, we will be able to offer the full spectrum of cyber security solutions, making us well placed to meet this demand. Furthermore, the unique combination of Accel’s end-to-end cyber security solutions and our telco-centric, network-based capabilities will make us one of the few providers who can offer customers integrated cyber security solutions specially tailored to their needs.” Ms Tammie Tham, Chief Executive Officer of Accel, said, “Accel has a strong track record in cyber security solutioning and systems integration. We believe that joining forces with StarHub, a fully integrated info-communications company with its own Cyber Security Centre of Excellence (COE), will allow us to further build on our existing competencies to offer a strengthened value proposition to our customers.”
Following the acquisition of Accel, StarHub will expand the internal research and development abilities of its COE to develop and localise advanced cyber security solutions. StarHub will also continue to work with its existing key partners to deliver services such as Cyber Threat Monitoring, Internet Clean Pipe and Unified Threat Management.
Accel will operate as a standalone StarHub subsidiary and continue to be led by its current management team. In addition, its offerings will now be enhanced by StarHub’s cyber security COE.
The acquisition will be paid in cash and funded using internal cash resources. It is expected to close by mid-June, subject to the fulfilment of mutually-agreed conditions.
StarHub had just announced for the 1Q 2017, total revenue was slightly higher at S$592 million compared to a year ago while service revenue was 1% lower at S$537 million. The lower service revenue was mainly due to lower revenue from Pay TV and Mobile services. The Group’s EBITDA decreased 12% to S$161 million from S$183 million previously. Correspondingly, EBITDA margin was lower at 29.9% versus 33.8% a year ago. Net profit after tax was also lower by 21% year-on-year (YoY) at S$73 million.