South Korean operator SK Telecom has announced that its subsidiaries SK Infosec and Life and Security Holdings, the parent company of ADT Caps, each held a board of directors meeting and approved the merger. SK Infosec and Life and Security Holdings will merge this year, and then merge ADT Caps within the first quarter of 2021 to complete the process.
Physical security company ADT Caps currently has 700,000 subscribers in South Korea. Its main business areas include unmanned security, unmanned parking and access control. It reported KRW 913 billion in revenue in 2019.
South Korean information security company SK Infosec posted revenues of KRW 270 billion in 2019. The company currently offers information security consulting services, cybersecurity monitoring/control services and system integration.
SK Telecom plans to develop the merged entity into a convergence security company in Korea worth KRW 5 trillion within three years of its launch by leveraging the physical and information security technologies of ADT Caps and SK Infosec.
The specialized security company is expected to introduce a new level of convergence security services by combining SK Telecom’s ICT including 5G and AI, SK Infosec’s information security platform and ADT Caps’ security monitoring/control system and dispatch security service assets. In particular, for individual customers, it will be able to offer a service that safeguards personal information by preventing hacking of surveillance cameras or Wi-Fi networks, along with a dispatch security service to protect them against foreign intruders.
The merged entity will also allow enterprise customers to build an access control system applied with IoT sensors, intelligent surveillance cameras and biometrics, while preventing safety accidents through a converged security monitoring/control system that protects IT systems against potential physical and cyber attacks. The merged entity will focus on realizing convergence services tailored to the needs of individuals, homes, enterprises/industries and the society, as well as AI-based integrated security monitoring/control systems. It is also expected to speed up its preparations for an initial public offering (IPO).
SK Telecom also says the merged entity will actively seek global market opportunities. It will first focus on exporting its convergence security products and services to China and Southeast Asia, and then expand further into the global market through partnerships and collaboration. SK Infosec has already have an ongoing partnership with Vingroup, a private conglomerate in Vietnam.