Singapore Telecommunications (Singtel) has agreed to sell all of its equity interest in Trustwave Holdings, its cyber security business, to MC2 Titanium LLC for $205 million, according to its disclosure.
The transaction comprises a secured note and cash and is expected to be completed this quarter, subject to regulatory approvals and customer closing conditions, Singtel’s investor presentation showed.
The buyer, MC2, is a growth equity fund founded by the executive team of global advisory firm The Chertoff Group. It makes private equity investments in high-growth companies in sectors such as cybersecurity, defense technology, government services, and homeland security.
According to earlier reports, Singtel has been speaking with financial advisers for a potential divestment of Chicago-based Trustwave as part of efforts to streamline its portfolio to raise cash.
Trustwave, one of the largest independent managed security services providers in North America, with presence in Europe and Asia Pacific, was acquired by Singtel in 2015 for an aggregate consideration of approximately $810 million. That time, Trustwave had over 3 million business subscribers.
Singtel started its strategic review of the unit in May 2021 after announcing that it was taking a $250-million non-cash impairment charge against its investment in Trustwave. In October that year, Trustwave sold its payment card industry compliance business SecureTrust for $80 million.
The company said Trustwave will be deconsolidated from the group’s financials.
“This transaction is not material and is not expected to have a material impact on the Singtel Group for the financial year ending 31 March 2024,” Singtel said in a disclosure.
In July last year, the Singapore telco sold mobile-focused marketing platform Amobee to Tremor International for $239 million. Singtel first bought Amobee in 2012 for $321 million. It also sold a majority stake in a portfolio of Australian wireless tower assets to pension manager AustralianSuper Pty for about $1.3 billion.
Last month, global buyout powerhouse KKR & Co announced that it has agreed to commit up to S$1.1 billion ($807 million) for a 20% stake in the regional data centre business of Singtel.