EQT Value-Add Infrastructure to acquire SK Shieldus, a leading South Korean integrated security operator
- SK Shieldus provides central monitoring and dispatch services to 680,000 commercial customers, and market leading cyber security consulting and monitoring services
- SK Shieldus, which marks EQT Value-Add Infrastructure’s first investment in South Korea, leverages digital and connected infrastructure to deliver services that make Korean society safer from both physical and cyber threats
- SK Shieldus will be able to leverage EQT’s sector experience within physical and cyber security, and strong digitalization capabilities to enable more tailored and digitized security service offerings for its customers
EQT is pleased to announce that EQT Infrastructure VI (“EQT Value-Add Infrastructure”) has agreed to acquire SK Shieldus Co Ltd (“SK Shieldus” or the “Company") from SK Square, an affiliate of South Korea’s second largest conglomerate SK Group, and Macquarie Asset Management’s Infrastructure business (“Macquarie”). Following the closing of the transaction, EQT Value-Add Infrastructure will own 68 percent in SK Shieldus, while its current shareholder, SK Square will remain as a minority shareholder with 32 percent.
Headquartered in Pangyo, South Korea, SK Shieldus is a scaled integrated physical security operator providing digital security infrastructure across 680,000 commercial customer sites and more than 100 central monitoring and dispatch centers across South Korea. The Company also provides a “closed loop offering”, covering both physical and cyber protection to strategic customer locations.
SK Shieldus is supported by strong secular tailwinds in South Korea, such as an aging population, increased digitization of traditional on-location guard services, and an increased focus on cyber security. The Company acts as a de facto extension of Korean public police and security services and is an embedded part of the country’s security network. The country’s security market is protected by high barriers of entry and stringent regulation requirements which require operators to have a dense network of dispatch and monitoring capabilities to deliver high-quality service to customers.
SK Shieldus is expected to leverage EQT’s strong sector expertise within physical and cyber security, and strong digitalization capabilities to enable more tailored and digitized security service offerings for each customer segment, with the ambition to make South Korea more safe in both physical and digital domains. Moreover, EQT Value-Add Infrastructure plans to decarbonize the Company’s vehicle fleet in favor of increased electrification and phasing out of fossil fuel. The Company will be supported by a new Board of Directors, with a combination of EQT’s Industrial Advisors, with backgrounds in leading security companies in Europe and North America, as well as prominent Korean business leaders.
Sang Jun Suh, Managing Director and Head of South Korea for EQT’s Infrastructure Advisory Team, said, “SK Shieldus marks EQT Value-Add Infrastructure’s first investment in Korea and comes just weeks after EQT opened a new office here in Seoul. The company is a clear leader in both the Korean physical and cyber security markets and EQT Value-Add Infrastructure is excited about partnering with SK Square to support SK Shieldus as it continues to roll out new digitized security solutions and invest in the decarbonization of its vehicle fleet.”
Park Jung-ho, Vice Chairman of SK Square, said, “Our joint management deal will provide us an opportunity to upgrade the global competitiveness of the Korean security industry. With the support from EQT, SK Square will further enhance the shareholder value, based on its first full-cycle investment performance since the launch of the company.”
The transaction is subject to customary conditions and approvals, including approval under the Foreign Investment Promotion Act. It is expected to close in Q3 2023.
EQT Value-Add Infrastructure was advised by Standard Chartered (financial), Kim & Chang (legal), PwC (financial, tax and technology) and BCG (commercial).
With this transaction, EQT Infrastructure VI is expected to be 5-10 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication) and subject to customary regulatory approvals.
Contact
APAC media inquiries: daniel.ketema@eqtpartners.com, +65 9628 7576, mavis.ma@eqtpartners.com, +852 9280 9663
International media inquiries: EQT Press Office, press@eqtpartners.com, +46 8 506 55 334
About EQT
EQT is a purpose-driven global investment organization with EUR 113 billion in assets under management within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.
More info: www.eqtgroup.com
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About SK Shieldus
SK Shieldus is a corporation merged between ADT Caps, the physical security company launched as Korea Security Service in 1971, and SK Infosec, the cyber security company launched in 2000. The combined company delivers a leading package of security services to Korean customers across Physical Security, Cyber Security and Converged Security.
More info: www.skshieldus.co
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