Singapore, 11 March 2020 – StarHub Ltd (“StarHub”) today announced that it has signed an agreement to acquire a significant stake in Strateq Sdn Bhd (“Strateq”), a Malaysia-based leading data-driven business solutions and information and communications technology (ICT) company with a growing international presence.
StarHub via its indirect subsidiary in Malaysia, Taman Kenyir Holdings Sdn. Bhd, will pay an initial consideration of up to S$82.1M (RM$249.7M) for 88% of Strateq’s shares. Established in 1988, Strateq transformed from a systems integrator to designing and delivering data-driven digital solutions to serve predominantly enterprise and government customers across Malaysia, Singapore, China, Hong Kong, Thailand and the United States. Strateq focuses primarily on healthcare information systems, retail fuel IT managed services and payment solutions, cloud services, data analytics, data centre services and IT infrastructure projects.
Upon completion of the acquisition, it is envisaged that Strateq Sdn Bhd will be held via Taman Kenyir Holdings Sdn. Bhd, StarHub’s indirect Malaysian subsidiary and two other Malaysian-incorporated entities owned by Tunku Dato’ Seri Shahabuddin, Group Chairman of Strateq, and Datuk Ir. Dr. Ahmad Fikri Bin Hussein, Executive Director of Strateq.
Following the creation of Ensign InfoSecurity, one of the largest pure-play cybersecurity companies in Asia Pacific, to provide advanced digital security solutions to enterprise and government clients, StarHub is strengthening its enterprise digital services capabilities across the region via its investment in Strateq.
Peter Kaliaropoulos, Chief Executive of StarHub, said, “StarHub’s transformation strategy includes accelerating growth and diversification by investing in new, asset-light digital services to complement existing fixed and wireless infrastructure operations. As every business and government client is involved in digital transformation, data-driven solutions based on systems integration, cybersecurity, data analytics and managed infrastructure services provide the right opportunity for growth.”
“Our existing ICT managed services and cybersecurity capabilities in Singapore and Asia Pacific will be strengthened and diversified following the addition of Strateq to our portfolio. Strateq has over 30 years of proven track record and a strong leadership team and talent with regional experience. We welcome the opportunity to work closely with Strateq’s talented people, sharing the same vision of delivering data-driven solutions to clients and enabling them to succeed as convergence in ICT progresses unabated,” added Mr Kaliaropoulos.
“Strateq’s leading position in enterprise IT services is built on an unwavering commitment to quality,” said Tunku Dato’ Seri Shahabuddin, Group Chairman of Strateq. “Strateq has an established track record of meeting the IT services needs of large organisations in the public and private sectors in Malaysia and beyond. We are pleased to partner StarHub, whose leadership talent, regional expertise and financial strength we believe will accelerate Strateq’s evolution into a regional champion.”
The acquisition is expected to complete by 1H2020, subject to the fulfilment of mutually agreed conditions.