Thursday, July, 25, 2024 08:03:34

Optus Cyber Security, the Australian subsidiary of Singtel, has entered into a deal to buy Hivint Cybersecurity, a privately held cyber security start-up incorporated in Victoria state. Recent reports have confirmed that Hivint would be integrated into Singtel group’s Trustwave cyber security arm

According to sources, Optus Cyber Security would pay up to A$23.3 million (S$22.9 million) for acquiring the three-year-old Hivint, in a conditional agreement. The deal would be subject to adjustments such as working capital and cash at closing, as well as earn-out targets.

Hivint’s assets and business prospects were assessed on a willing buyer, willing seller basis and a suitable valuation was agreed upon, the sources said. Hivint reportedly had net tangible assets amounting to nearly A$2.5 million, derived from unaudited financial statements as of June 30.

Arthur Wong, Singtel’s chief executive of global cyber security and chief executive officer of Trustwave, was quoted in a statement saying that Australia’s business leaders were already leveraging Hivint as a preferred security advisor. Now, these leaders would have direct access to the complete portfolio of security solutions from Trustwave, along with advanced education programs and managed security services, Wong added.

Managing Director for the Optus business, John Paitaridis stated that Hivint’s reputation will reinforce the position of Optus as a leading cyber security service provider in Australia. Optus has the opportunity to become a trusted adviser to both, enterprise customers and government agencies, he suggested.

The acquisition depends on certain conditions precedent, including the receipt of relevant regulatory approvals. Market reports showed that stocks of Singtel had ended lower by 1.26 per cent or S$0.04, to S$3.14, before the announcement regarding the deal was made.

Records indicate that Singtel and Optus have been focusing on enhancing their cybersecurity services, with Optus investing A$3.5 million in November 2017 for developing the Cyber Security Cooperative Research Centre (CSCRC).