SKT provides total care services
SK Telecom will acquire a 100% stake of ADT CAPS at 1.246 trillion won (US$1.12 billion) in partnership with Macquarie Korea Infrastructure Fund (MKIF).
SK Telecom announced on May 8 that it had made a decision on this matter during a board meeting. ADT CAPS is the second largest physical security service provider in Korea with a total of 570,000 subscribers nationwide and occupies about 30% of the domestic market. Last year, the company achieved sales of 721.7 billion won (US$649 million) and operating profits of 143.5 billion won (US$129 million).
SK Telecom will secure management rights of ADT CAPS by investing 702 billion won (US$631 million) for a 55% stake. Macquarie will hold a 45% stake by investing 574 billion won (US$516 million). The entity acquired by the two companies is Siren Holdings Korea that owns 100% of ADT CAPS.
The two companies plan to complete the takeover within the third quarter as soon as they sign a stock sale contract with the sales agent, Carlyle, followed by the report and approval of the merger.
ADT CAPS is expected to transform into a next-generation security company by building an integrated security system that utilizes new ICT technologies, including AI, IoT, and Big Data propelled by SK Telecom. SK Telecom plans to expand its business to total care services beyond the existing business model centered on dispatch services for safety of individuals and assets. This is to meet the current trend of an increasing number of single-person households and the elderly population, and introduction of unmanned shops. New facility security services such as unmanned convenience store security management and large-scale factory management using drones are also expected to be released.
SK Telecom said, "The next generation security service based on the new ICT is a blue ocean market and next generation’s growth engine," adding, “We will raise ADT CAPS to the worth more than 1 trillion won (US$900 million) in sales by 2021."