SK Telecom, Macquarie to buy security firm ADT Caps for $1.2b
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SK Telecom has partnered with Macquarie to fully acquire domestic security service firm ADT Caps for 1.276 trillion won ($1.18 billion), the South Korean mobile giant announced.
SK Telecom will buy 55% stake in Siren Holdings Korea, the company that holds 100% stake in ADT Caps, for 702 billion won ($650.7 million), while Macquarie will buy 45% stake for 574 billion won ($532 million).
The pair plans to sign a deal with seller Carlyle Group and complete the transaction as early as in the third quarter of this year, SK Telecom said in a statement.
Through the acquisition, SK Telecom aims to build new business models by introducing technologies such as AI, IoT and big data to the country’s fast-growing security services industry and turns ADT Caps into “a next-generation security services provider” with these technologies.
ADT Caps is the country’s second-largest security services provider with 570,000 subscribers. The company mainly provides physical security services, including access control and facilities management, and accounts for roughly 30% of the local physical security services market.
In 2017, ADT Caps recorded revenue of 721.7 billion won and operating income of 143.5 billion won.
Questions & Answers
Q.What is the total value of the acquisition for ADT Caps?
What is the total value of the acquisition for ADT Caps?
SK Telecom and Macquarie are jointly acquiring ADT Caps for 1.276 trillion won, which equates to approximately $1.18 billion. This is a full acquisition of the domestic security service firm.
Q.How will the ownership of Siren Holdings Korea be split between the two buyers?
How will the ownership of Siren Holdings Korea be split between the two buyers?
SK Telecom will purchase a 55% stake in Siren Holdings Korea for 702 billion won, while Macquarie will acquire the remaining 45% stake for 574 billion won. Siren Holdings Korea fully owns ADT Caps.
Q.What is SK Telecom's strategic goal for ADT Caps following this acquisition?
What is SK Telecom's strategic goal for ADT Caps following this acquisition?
SK Telecom aims to develop new business models by integrating technologies like AI, IoT, and big data into ADT Caps' services. The goal is to transform ADT Caps into a next-generation security services provider.
Q.How large is ADT Caps in the local physical security market?
How large is ADT Caps in the local physical security market?
ADT Caps is the second-largest security services provider in the country, with 570,000 subscribers. It holds roughly 30% of the local physical security services market, offering access control and facilities management.
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