SINGAPORE (May 29): RHB says StarHub’s timely acquisition of a 51% stake in Accel Systems Technologies (ASTL) will strengthen the company’s cyber security portfolio and capabilities, allowing it to offer end-to-end cyber security solutions and services.
(See also: StarHub to acquire 51% stake in cyber security systems integrator for $19.4 mil)
The cyber security solutions provider was purchased from India-based IT services provider Accel Frontline for $19.4 million. The all-cash deal is expected to be completed by mid-June.
RHB is maintaining its “neutral” recommendation with a $2.70 target price.
According to RHB, StarHub’s acquisition of Accel is timely given the ever-increasing threat of cyber-attacks globally. It also follows closely behind the WannaCry ransomware attack which infected computer systems in more than 150 countries including those of government agencies and enterprises.
RHB expects the StarHub’s acquisition of ASTL to help strengthen its fixed network services/enterprise suite of managed services – comprising 17% of the group’s revenue – where cyber security is a fundamental part of the overall service/product offerings.
ASTL’s portfolio of customers will also benefit Starhub for cross-selling potential, which includes key multinational companies and government agencies. The acquisition is also expected to complement not just StarHub’s investments in Smart Nation projects, but also the eventual launch of 5G networks.
Shares of StarHub are trading 1 cent lower at $2.69.
