Technology services firm NCS is expanding its Asia-Pacific footprint through a joint venture with Globe Telecom in the Philippines.
NCS has reached an agreement with Globe to acquire a majority stake in Globe’s IT arm Yondu in the Philippines.
The transaction would enable NCS global clients to have greater access to digital, cloud, data and AI services.
The JV will scale NCS’ Philippines workforce from 150 to more than 1,200 professionals, making it a major technology services player in the country.
Also, the JV expedites the expansion of NCS’ Global Delivery Network, combining NCS’ delivery capability and capacity with Yondu’s resources and skills.
In addition, NCS will bring in its global resources in digital, cloud, data and AI services to augment Yondu’s service offerings. These currently include Custom Software Development, eCommerce Solutions and Cloud platforms.
The new JV entity will be renamed NCS Philippines following the closing of the transaction.
“Globe and Yondu’s deep country expertise, coupled with NCS’ technology capabilities, will increase our capacity to further drive business transformation and innovation, especially in the telecommunications sector,” said Ng Kuo Pin, CEO of NCS.
Ernest L. Cu, president and CEO of Globe, said that partnering with NCS will unlock new global opportunities, enabling Yondu to expand its reach and deliver more impactful IT solutions worldwide.”
As part of the transaction, NCS, through its wholly owned subsidiary NCSI Holdings, will acquire a 51% stake in Yondu, which will have a post-transaction enterprise value of PHP1.87 billion (about S$44 million).
The total net consideration of about S$3 million, subject to net cash and debt adjustments pursuant to the joint venture agreement.
This amount by NCS is net of the S$19 million used by Yondu to acquire the existing NCS’ subsidiary, NCSI Philippines. The transaction will be funded using cash and internal resources.
The closing of the transaction is subject to the satisfaction of certain conditions precedent.
