SingTel will acquire TrustWave Holdings, the largest U.S. independent provider of managed security services, for $810 million, the companies said on Tuesday.
SingTel, a large operator based in Singapore, owns stakes in mobile companies in Indonesia, the Philippines, Thailand, Bangladesh, India, Sri Lanka and countries in Africa. In Australia, SingTel runs Optus, one of the country’s major operators.
Chicago-based TrustWave specializes in managed security services, an increasingly popular option for businesses. They allow customers turn over to a third party their network security, vulnerability management and data breach responsibilities, so they don’t have to develop those capabilities in house. As computer security has become increasingly complicated, managed security services are often are cheaper, and can allow companies to respond to security breaches faster.
Gartner expects the managed security services market to grow to $24 billion in the next three years, up from $14 billion last year, according to a report from last August.
TrustWave will operate as a standalone business unit, and its CEO and president, Robert McCullen, will remain in those roles. It will continue to run as its own brand and provide the same services, McCullen wrote in a letter to customers.
The company has 3 million business subscribers in 96 countries and runs five security operation centers, in Chicago, Denver, Minneapolis, Manila and Warsaw. It frequently publishes research from its SpiderLabs analyst team.
SingTel said the acquisition will enhance its cyber capabilities. It already partners with Akamai and in February launched security operation centers in Singapore and Sydney with FireEye.
The acquisition is expected to close in three to six month pending regulatory approvals.