NCS, the tech services subsidiary of Singapore Telecommunications (Singtel), is acquiring a 51% stake in Yondu Inc, the IT services subsidiary of Philippine telecom major Globe, according to an announcement.
Under the joint venture agreement, Globe will retain a 49% interest in Yondu, which will also acquire NCSI Philippines, a subsidiary of NCS, for about $14.4 million, marking it a wholly owned unit.
The transaction values the joint venture at 1.87 billion pesos (about $33 million), Globe said. The new entity will be named NCS Philippines upon closing, which is subject to regulatory and customary approvals.
The deal will see NCS increase its workforce in the Philippines from 150 to over 1,200, expanding its Global Delivery Network and enhancing access to digital, cloud, data, and AI services.
“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 NCS CEO Ng Kuo Pin.
Yondu has over 20 years of expertise in providing custom software development, managed security services, e-commerce solutions, cloud services, and ready-to-use platforms.
Globe president and CEO Ernest L. Cut said IT serves as the foundation for industries, transforming the question of how to use it into exploring what other beneficial applications it can offer.
“Partnering with NCS will unlock new global opportunities, enabling Yondu to expand its reach and deliver more impactful IT solutions worldwide,” said Globe president and CEO Ernest L. Cu.
Globe acquired back Yondu from Xurpas Inc in 2019. Xurpas, a listed consumer technology company in the Philippines, acquired a majority stake in Yondu from Globe in 2015.
Globe is one of the key founding partners of Mynt, the fintech company behind GCash in the Philippines. GCash was reported to have hired banks, including Citi, Jefferies, and UBS, to work on a domestic IPO of up to $1.5 billion.
