NCS, the technology services arm of Singapore-based telecommunications conglomerate Singtel, is expanding into the Philippines through a joint venture with Globe Telecom Inc. over its information technology (ITA) unit, Yondu.
In a disclosure to the Philippine Stock Exchange (PSE), Globe announced that it entered into an agreement with NCS’ wholly owned subsidiary, NCSI Holdings, to acquire a majority stake in Yondu.
NCSI Holdings will acquire a 51 percent stake in Yondu for a total net consideration of ₱134 million.
As part of the transaction, the said amount is net of the ₱818 million used by Yondu to acquire the existing NCS subsidiary, NCSI Philippines.
Globe will retain 49 percent ownership of Yondu and NCSI Philippines.
The joint venture will have a post-transaction enterprise value of around ₱1.9 billion.
Globe President and Chief Executive Officer (CEO) Ernest Cu said its vision for Yondu is to be a “force for good” through effective IT products and services.
“Partnering with NCS will unlock new global opportunities, enabling Yondu to expand its reach and deliver more impactful IT solutions worldwide,” said Cu.
The joint venture between NCS and Globe is poised to be a key player in the Asia-Pacific (APAC) region through its collective expertise in developing customized digital solutions and advanced tools in accordance with customer specifications and timelines.
Globe and Yondu’s substantial local footprint, combined with NCS’ trusted caliber in digital, cloud, data, and artificial intelligence (AI) services, is seeking to make this goal a reality.
NCS CEO Ng Kuo Pin noted that the joint venture will increase both companies’ capacity to further drive business transformation and innovation, especially in the telecommunications sector.
“This joint venture marks a significant milestone in our APAC growth journey as we continue to invest to meet the region’s growing demand for technology services, in particular, AI-led solutions,” said Pin.
In a statement, NCS said its partnership with Globe will scale NCSI Philippines workforce from 150 to more than 1,200 employees
This will likewise expedite the expansion of NCS’ global delivery network, fueled by its delivery capability and capacity alongside Yondu's resources and skills.
“It will offer greater value to our global clients, who will benefit from our expanded global delivery network as well as greater access to our digital, cloud, data and AI services,” added Pin.