MANILA, Philippines – Globe Telecom Inc. has entered into an agreement worth PHP 1.87 billion to establish a joint venture (JV) with a subsidiary of the Singtel Group aimed at enhancing cloud, data, and artificial intelligence services across the Asia-Pacific area.
On Thursday, the Ayala Corporation announced that NCSI Holdings Pte. Ltd., based in Singapore, will acquire a 51% ownership stake in Globe’s IT subsidiary, Yondu, while retaining a 49% share.
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Yondu will also gain complete control over NCSI’s domestic affiliate—NCSI Philippines, whose primary services encompass digital applications, infrastructure, engineering, and cybersecurity.
Yondu is an IT solutions company providing services such as custom software development, managed security, e-commerce solutions, and cloud services.
Globe stands to gain from the technological expertise and product range provided by the consolidated assets of the joint venture.
Globe is a collaboration between Ayala Corporation and SingTel, with Asiacom Philippines Inc., their joint venture, holding 52.3 percent of the company.
In addition, Ayala holds a 14.5% share in Globe, whereas Singtel owns 22.2%.
“Our aim for Yondu is to become a positive influence via efficient IT solutions and offerings,” stated Ernest Cu, who serves as the president and CEO of Globe.
Going global
Cu mentioned that joining forces with NCSI will open up new international prospects, allowing Yondu to broaden its scope and provide more effective IT solutions across the globe.
“This partnership represents a crucial step in our expansion within the Asia-Pacific region as we remain committed to investing in order to address the increasing demand for technological services, specifically AI-driven solutions,” said NCSI CEO Ng Kuo Pin.
The transaction is awaiting regulatory approval.
Globe and NCSI are teaming up as the need for digital solutions tailored to businesses increases.
A study conducted by International Data Corp. forecasts that the IT services market across the Asia-Pacific region is expected to grow at an annual compound rate of 6.2% between 2024 and 2028. In this timeframe, the market in the Philippines is anticipated to expand with an impressive 8.7% yearly increase.
In order to enhance its IT services, Globe has also been bolstering its infrastructure to accommodate the rise in data traffic.
Last year, the corporation affiliated with Ayala built 1,212 new cell sites, improved 4,613 current mobile locations, and installed 67,456 home fiber connections. Additionally, they set up 587 new 5G stations nationwide.