M1 and AsiaPac Technology invest $36M for majority stake in Glocomp
- 02 December, 2021 07:20
L-R: Willis Sim (M1); Lee Kok Chew (M1); Andrew Cheng (AsiaPac Technology); Manjot Singh Mann (M1) and Alen Ng (M1)
Singapore-based telecommunications group M1 and subsidiary AsiaPac Technology have inked a deal to acquire a 70 per cent stake in Malaysia-based digital solutions provider Glocomp Systems.
The deal, worth RM111 million (S$36 million), also sees M1 – itself a subsidiary of Keppel Corporation – snap up a majority stake in Global Computing Solutions (GCS) and GCIS, both of which are affiliate businesses of Glocomp Systems.
The remaining 30 per cent stake in the three Malaysian digital solutions providers will continue to be held by the Glocomp founders.
However, as part of the transaction, GCS and GCIS will be restructured as wholly owned subsidiaries of Glocomp and managed by a unified management team.
Founded in 1997, Glocomp goes to market as a specialist distributor in Malaysia with expertise across information management, security and cloud, in addition to automation, analytics and productivity solutions.
Glocomp’s founders, including managing director Joseph Giam and executive directors Alex Liew, Chan Tze Ming and Chan Yue Mun, will continue to play active roles as senior management of the company.
“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,” said Giam. “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.
“This opportunity 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,” he added.
The investment in Glocomp marks M1’s continued expansion of its cloud and managed services business, following its acquisition of AsiaPac Technology in 2018.
The transaction represents the group’s initial strategic expansion into other regional markets, starting with Malaysia. It is claimed 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.
Glocomp also adds new capabilities and talent resources to M1 with certified competencies in cyber security, enterprise systems and multi-cloud infrastructure, the company said.
Additionally, the investment in Glocomp is expected to not only provide recurring revenue contribution to the Keppel group as a whole, but also to generate overseas revenue for M1.
“The addition of Glocomp to our portfolio marks another milestone for M1 as we continue to strengthen our enterprise digital service capabilities while accelerating growth in the region,” said Manjot Singh Mann, CEO of M1. “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 Vision 2030 and continuously create value for enterprises through innovative technology and digital solutions,” he added.
The initial tranche of the transaction is expected to be completed by the end of the first half of 2022, subject to certain conditions.
Earlier this month, AsiaPac Technology, the company through which the acquisition is being accomplished, revealed it had expanded its capabilities within the VMware portfolio to ramp up multi-cloud deployments across Singapore, targeting regulated industries such as financial services, government and healthcare.
The deepened alliance was to see AsiaPac become the first partner in Southeast Asia and Korea to deploy VMware vRealize Operations Cloud and VMware Cloud Director, skilling up in response to increased customer demand across Singapore.
Specifically, vRealize Operations Cloud was expected to help AsiaPac unify multi-cloud operating practice capabilities by consolidating all metrics from VMware, Amazon Web Services (AWS) and Microsoft Azure cloud environments into a “single, unified platform”.
This was in addition to providing a “consistent monitoring and reporting service” for customers irrespective of application distribution levels.