Streamlining Operations Amid Strategic Shifts
Singapore Telecommunications (Singtel) is advancing plans to sell its cybersecurity arm, Trustwave Holdings, in a deal potentially worth between US$200 million and US$300 million, according to sources familiar with the matter.
Exploring Divestment Options
Singtel is working with financial advisers on the potential sale of Trustwave, a Chicago-based cybersecurity business. Industry players and investment funds are expected to show interest in the unit. However, sources caution that discussions are still in preliminary stages, and Singtel may ultimately decide to retain Trustwave.
Singtel representatives have declined to comment on the matter.
Portfolio Realignment and Strategic Focus
The planned sale aligns with Singtel’s broader strategy to streamline its portfolio, raise funds, and focus on growth areas like 5G networks, IT services, and data centres.
Singtel acquired Trustwave for US$810 million in 2015 but announced a US$250 million non-cash impairment charge on the investment in 2021, initiating a strategic review of the business. Since then, Trustwave sold its SecureTrust compliance division for US$80 million in 2022.
Recent Asset Sales
Singtel has been divesting non-core assets to bolster its financial position. Notable transactions include:
Selling advertising platform Amobee to Tremor International for US$239 million in July.
Divesting a majority stake in Australian wireless tower assets to AustralianSuper for approximately A$1.9 billion (S$1.8 billion) in October.
Additionally, Singtel is evaluating options for its Australian subsidiary SingTel Optus’s fibre assets, including a potential stake sale.
Market Challenges
The decision to sell Trustwave comes as valuations for tech assets have fallen due to rising interest rates and concerns about economic growth. The cybersecurity sector has not been immune, with shares in companies like CrowdStrike Holdings and NortonLifeLock declining by 22.5% and 9.4%, respectively, over the past year.
As Singtel pivots toward its strategic priorities, the potential Trustwave sale reflects the company’s focus on adapting to evolving market conditions and capturing growth opportunities.
