M1 has unveiled plans to purchase up to 70% stake in Malaysia's Glocomp Systems and the latter's two affiliated companies, Global Computing Solutions (GCS) and GCIS. The acquisition is part of efforts to further expand the Singapore telco's cloud and managed services business.
M1 said in a statement Wednesday it would fork out an estimated 111 million ringgit ($26.17 million) for the transaction, which would be carried out through its Malaysia-based subsidiary AsiaPac Technology. AsiaPac itself was acquired by M1 in 2018.
Under the deal, GCS and GCIS would be restructured as wholly-owned subsidiaries under Glocomp and managed by one management team. Glocomp's founders would hold on to the remaining 30% stake.
The Malaysian IT services company has a 24-year history and offers a portfolio that includes cloud services, IP communications, IT automation and analytics, and security and privacy.
The acquisition signalled "continued expansion" of M1's cloud and managed services business, following the acquisition of AsiaPac, M1 said, with Malaysia serving as the first market from which the telco would drive its regional expansion.
"The Glocomp acquisition is a natural extension of M1's cloud services business and provides strong synergies with AsiaPac's hybrid multi-cloud competencies and established partnerships," the Singapore telco said. "Glocomp also adds new capabilities and talent resources to M1 with certified competencies in cybersecurity, enterprise systems, and multi-cloud infrastructure."
The Malaysian company also would generate overseas revenue for M1, the telco added. The transaction is expected to be completed by mid-2022.
M1 is a subsidiary of Keppel Corp, following a buyout bid in 2018 when Keppel and Singapore Press Holdings--both of which were M1 shareholders--forked out SG$1.91 billion (US$1.4 billion) to acquire the remaining shares in the telco.
The telco launched a rebranding exercise early this year with promises to deliver more personalised customer experience and services that more closely leverage its ties with Keppel. The move came almost two years after M1 delisted and migrated 90% of its operations to the cloud, as part of a multi-year transformation strategy.