SINGAPORE (Dec 15): StarHub has entered into an agreement to acquire D’Crypt for up to $122 million.

Led by Dr Antony Ng, D’Crypt provides leading-edge cryptographic technology for high security applications, systems and products.

StarHub says the proposed acquisition will enhance its solutions in areas such as cryptographic and digital security, secure info-communications technologies (ICT) and Internet of Things (IoT), areas vital to Singapore’s Smart Nation platform.

Featuring a world-class engineering team and a multidisciplinary R&D lab, D’Crypt has a strong track record of designing and producing innovative products which have been successfully commercialised.

Established in 2000, D’Crypt services clients in the military, security and government sectors around the world.

Among other products, D’Crypt’s largest project to date is the d’Cryptor ZE, the computational and security core in the Electronic Road Pricing (ERP) In-Vehicle Unit which is currently in use in Singapore’s ERP system.

"This has enabled D’Crypt to establish market-leading strengths in encrypted communications, high performance computing, secure IoT, and vulnerability and threat analysis, with proven products implemented in sectors such as toll systems and wireless encrypted payment solutions," says StarHub in its Friday filing.

Tan Tong Hai, CEO of StarHub, says: “The enterprise business is a key pillar of our growth strategy and this strategic investment will further expand the breadth and depth of our enterprise solutions. D’Crypt’s deep engineering and R&D expertise will allow us to develop new intellectual property and products which meet our customers’ requirements as well as support Singapore’s Smart Nation initiatives.”

Dr Antony Ng, CEO of D’Crypt, says being part of StarHub will allow D’Crypt to deliver more innovative products and systems for ever more challenging applications and discerning customers.

Post-acquisition, D’Crypt will operate as a standalone StarHub subsidiary and continue to be led by its current management team.

The acquisition will be conducted in two phases: A 65% upon completion of Phase 1 and 35% in Phase 2 by 1H 2021. Following the completion of Phase 2, D’Crypt will be a wholly-owned subsidiary of StarHub. The acquisition will be paid in cash and funded using internal cash resources. Phase 1 is expected to close by early 2018, subject to the fulfilment of mutually-agreed conditions.

Shares in StarHub closed at $2.92 on Friday.