MANILA -- Globe is entering into a joint venture agrement with technology services firm NCSI Holdings Pte. Ltd. (NCSI) to boost its IT solutions unit Yondu.

In a statement, Globe said it entered into an agreement with NCSI to hold 51 percent ownership in Yondu.

Yondu will also buy NCSI Philippines, making it a fully-owned Yondu subsidiary.

Upon closing, Globe will retain 49 percent ownership in Yondu and NCSI PH. The joint venture will have an enterprise value of P1.868 billion.

NCSI's parent firm NCS Pte. Ltd. is a leading technology services firm in the Asia Pacific that partners with governments and enterprises to advance communities through technology.

Globe said Yondu's local footprint, together with NCS’ strengths in digital, cloud, data, and AI services and strong Asia-Pacific network will make their joint venture a Pan-APAC player with global expertise to develop customized digital solutions.

"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," said Globe president and CEO Ernest Cu.

The agreement is still subject to the satisfaction of conditions precedent to closing and other closing activities.

Globe tech unit Yondu bets on AI

Globe said its net income stood at P24.3 billion last year, slightly down by 1 percent from P24.6 billion in the preceding year. But the Ayala-led telco also said its core net income hit P21.5 billion, higher by 14 percent year-on-year. 

Service revenues meanwhile hit a record P165 billion, up 2 percent, when excluding the impact of non-recurring charges, foreign exchange, and mark-to-market charges.