- Singapore’s NCS to acquire a 51% stake in Philippine IT services firm Yondu.
- Transaction valued at approximately $33 million, with Yondu to be renamed NCS Philippines.
What happened: NCS expands Philippine presence with Yondu acquisition
NCS, the technology services arm of Singapore Telecommunications (Singtel), plans to acquire a 51% stake in Yondu Inc. This company is the IT services subsidiary of the Philippine telecommunications firm Globe. Under the agreement, Globe will keep the remaining 49% interest in Yondu. Additionally, Yondu will buy NCSI Philippines, a subsidiary of NCS, for about $14.4 million. This purchase will make NCSI a wholly owned unit. The total transaction values the joint venture at 1.87 billion pesos (around $33 million). After the deal, the new entity will be renamed NCS Philippines, pending regulatory and customary approvals.
This strategic move will increase NCS’s workforce in the Philippines from 150 to over 1,200 employees. It will enhance the company’s Global Delivery Network and improve access to digital, cloud, data, and AI services. Yondu brings over two decades of experience, offering services such as custom software development, managed security services, e-commerce solutions, cloud services, and ready-to-use platforms.
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Why it is important
The acquisition of a majority stake in Yondu represents a significant step in NCS’s strategy to strengthen its presence in the Asia-Pacific region. By integrating Yondu’s established capabilities in the Philippine market, NCS aims to enhance its service offerings and address the growing demand for digital transformation solutions across various sectors.
This move aligns with NCS’s recent expansion efforts, including acquisitions in Australia to bolster its digital services portfolio. The collaboration with Globe also signifies a partnership between leading telecommunications entities in Southeast Asia, potentially fostering further regional integration in the technology services industry.
