M1 acquires ICT Glocomp Systems, grows foothold in MY

Singapore telco M1 has signed an agreement to acquire up to 70% stake in ICT Glocomp Systems and its affiliated companies Global Computing Solutions and GCIS. The remaining 30% stake will continue to be held by its founders. All three companies are Malaysia-based digital solutions providers. 

The acquisition will see M1 pay a total purchase consideration of up to RM111 million (SG$36 million) through AsiaPac Technology, M1's wholly owned subsidiary based in Malaysia. The acquisition, along with AsiaPac's in 2018, comes as part of M1's plans to strategically expand its cloud and managed services business into other regional markets, starting with Malaysia.

M1 said in a statement that the Glocomp acquisition is a "natural extension of its services and it provides strong synergies with AsiaPac’s hybrid multi-cloud competencies and established partnerships". Glocomp will also add new capabilities and talent resources to M1 in cybersecurity, enterprise systems and multi-cloud infrastructure.

Manjot Singh Mann, CEO of M1, said that the addition of Glocomp to its portfolio marks another milestone for M1 as it continues to strengthen its enterprise digital service capabilities while accelerating growth in the region. "We are thrilled to have Glocomp, a pioneer in the ICT industry with over two decades of experience, to be part of our growing team. Importantly, Glocomp’s expertise in the ICT sphere helps M1 to advance Keppel’s Vision 2030 and continuously create value for enterprises through innovative technology and digital solutions,” he added.

As part of the transaction, Global Computing Solutions and GCIS will be restructured as wholly owned subsidiaries of Glocomp and managed by a unified management team. MD Joseph Giam and executive directors Alex Lie, Chan Tze Ming and Chan Yue Mun will continue to play active roles as senior management of Glocomp.

Giam said that the acquisition will equip Glocomp with the necessary support to expedite growth in the region and strengthen our position in the ICT sector with major global technology partnerships. “Glocomp has established itself as one of the premier enterprise solutions providers in Malaysia and remains committed to developing in-country ICT talent capital while fostering regional investment in the country. We are excited to be part of M1, leveraging its competencies in connectivity and cloud infrastructure and look forward to driving strong synergies with M1 as well as enhancing our overall suite of offerings,” he added. 

The initial portion of the transaction is expected to be completed by the end of the first half next year, subject to the fulfilment of mutually agreed conditions. M1 also stated that the acquisition is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corporation for the current financial year.

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