Globe Telecom, Inc. (PSE: GLO), the telecommunications arm of the Ayala Group, announced that, with the cooperation of NCS Pte. Ltd. (NCS), it entered into an agreement with NCSI Holdings Pte. Ltd. (NCSI) and its IT arm Yondu Inc., bringing their expertise into a Pan-APAC player equipped with global expertise.
Under the agreement between Globe, NCSI and Yondu, Yondu shall become a joint venture of NCSI and Globe, with NCSI having 51% ownership, with the balance to Globe.
Simultaneously, Yondu will acquire 100% ownership of NCSI (Philippines) Inc. (“NCSI PH”), currently a subsidiary of NCSI. NCSI PH will then become a fully owned subsidiary of Yondu.
Upon closing, Globe will retain 49% ownership in Yondu and NCSI PH. The resulting joint venture will have an enterprise value of Php1.87 billion.
In its disclosure to the Philippine Stock Exchange, it said that Globe stands to benefit from the JV by providing an expansive set of technical capabilities and product offerings from the combined resources of Yondu and NCSI Philippines. The JV is also expected to support Globe’s market reach by providing access to a wider market both by geography and by sector.
It further said that Globe will cease to consolidate Yondu’s financials in its consolidated financial statements, and will not have a material impact on Globe’s business and consolidated revenues.
NCS is a leading Pan-APAC technology services company, and the joint venture between NCSI and Globe is projected to expand the client base to include international clients, particularly in the telco and adjacent sectors.
Yondu’s significant local footprint, combined with NCS’ strengths in digital, cloud, data, and AI services and broad network across Asia Pacific are envisioned to transform the joint venture into a Pan-APAC player equipped with global expertise to develop customized digital solutions and advanced tools in accordance to customer specification and timeline.
The joint venture also aligns with Globe’s strategy to develop responsive and compelling ICT capabilities for customers of all sizes.
Ernest L. Cu, president and Chief Executive Officer of Globe, shared that, “Information Technology is the bedrock on which industries are built on. Information Technology enables, and changes our question from ‘how do we use this’ into ‘what other good things can we do with this?’ Our 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.”
Ng Kuo Pin, CEO, NCS, said, “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. 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. 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.’’
The agreement is still subject to the satisfaction of conditions precedent to closing and other closing activities as outlined in the transaction documents.
