- EQT invests KRW 2 trillion in SK shieldus to become the largest shareholder of the company, and the corporate value of SK shieldus rises to KRW 5 trillion or more.
- SK Square secures KRW 864.6 billion for investment, with a stake of KRW 1 trillion in SK shieldus.
- SK Square achieved the highest investment performance since its launch, by doubling the corporate value of SK shieldus after acquiring the company.
- SK shieldus plans to issue new shares to invest in its future security businesses, expecting a synergy with overseas security firms invested by EQT.
- Park Jung-ho, the Vice President of SK Square, "SK Square will maximize the shareholder value, based on its first full-cycle investment achievement since the launch of the company."
SK Square (www.sksquare.com) and EQT Infrastructure(hereinafter referred to as EQT) under the umbrella of the global investment firm 'EQT' of the Swedish Wallenberg family agreed on the joint management of SK shieldus and announced their vision to grow the company to a 'global total security company.'
EQT bought part of the shares owned by SK Square and the entire stakes held by Macquarie Infrastructure and Real Assets for a total of KRW 2 trillion. EQT also acquired new shares of SK shieldus to become the largest shareholder(68.0%) of the company.
SK Square secured new investment resource of KRW 864.6 billion by transferring part of its shares of SK shieldus to EQT. As a major shareholder with a stake of 32.0%(KRW 1,024 billion worth of equity), SK Square will jointly manage SK shieldus with EQT.
With the investment from EQT, SK shieldus has demonstrated its strong competitiveness in the industry. SK shieldus' corporate value, which was KRW 3 trillion upon acquisition by SK Square, has almost doubled to reach over KRW 5 trillion(based on the equity value, including liabilities). This investment deal represents the highest investment performance of SK Square that was launched as a specialized investment company in November 2021.
In cooperation with EQT, SK Square plans to go through Korea Fair Trade Commission's M&A review and other governmental permission procedures by the 3rd quarter of 2023.
EQT* was founded by Conni Johnson, the current EQT Chairperson, and Investor AB, an investment company owned by Sweden's renowned Wallenberg* family, in 1994. Companies invested by Invest AB includes EQT, ABB, AstraZeneca, Atlas Copco, Electrolux, Ericsson, and SAAB, etc.
? Please refer to the references below for more details about EQT and the Wallenberg family.
EQT has been the world's third largest PEF(Private Equity Fund) in terms of the amount of investment funds for the last 5 years. Its AUM(Assets Under Management) amounts to approximately KRW 156 trillion (EUR 113 billion). EQT has invested in about 200 companies across the globe while supporting their growth. Its portfolio companies encompass a wide range of industries including communication, digital infrastructure, health care, tech & IT, real estate, green energy, and transportation.
EQT plans to utilize 25 investment experts in its Korean office to increase its investment in the Korean market. EQT ensures independent management of the Board of Directors of its portfolio companies, while also valuing mutual benefits with Korean local communities as an important management philosophy.
? SK Square achieves the highest investment performance since its launch, by delivering the essence of portfolio management
SK Square acknowledged the importance of future security and ICT convergence industry to lead innovation in the security industry ecosystem and to provide customers with differentiated services and decided to begin its endeavor with NSOK.
In 2014, SK Square acquired NSOK which was ranked the 4th in the physical security industry. In 2018, SK Square acquired ADP Caps as one of its affiliates in 2018 and focused on growing ICT-based new businesses beyond the existing physical security business. SK Square also utilized the AI and big data technologies of its affiliates to grow new businesses across diverse domains such as cyber security, smart home safety, and TMAP unmanned parking, etc.
In 2021, SK Square merged Korea's No.1 cyber security company 'SK Infosec' and 'ADT Caps' and changed the company name from ADT Caps to SK shieldus. With reinforced cyber security capabilities, SK shieldus explored new markets and achieved impressive growth by expanding its cloud security business and launching the AI converged security platform 'SUMiTS.'
Since its acquisition of ADP Caps in 2018, SK Square has almost doubled the value of the company from KRW 3 trillion to over KRW 5 trillion in 5 years. SK shieldus' revenue and EBITDA* also reached KRW 1792.8 billion and KRW 415.2 billion respectively in 2022, which approximately doubled compared to when it was acquired by SK Square in 2018.
? EBITDA : As a profitability metric used to measure a company's ability to create cash through its operating activities, EBITDA refers to the earnings before interest, taxes, depreciation and amortization.
The investment deal with EQT provides SK Square a momentum to drive a big deal in the recently undervalued M&A market.
SK Square explains that with this investment deal, it has come closer to fulling the vision to increase its net asset value through a flexible portfolio management strategy in about one year since its launch. SK Square currently holds 20 companies including SK Hynix, SK shieldus, 11STREET, and TMAP MOBILITY in its portfolio.
SK Square also demonstrated its competence as a specialized investment company by achieving the first investment performance throughout the full cycle of 'investment - corporate value increase- profit creation.' SK shieldus' growth trajectory since its acquisition by SK Square shows that SK Square concentrated its investment capacity to enhancing the corporate value of SK shieldus, moving beyond simply acquiring the management right of the company.
? The joint management by SK Square and EQT is expected to create synergy for SK shieldus to go global
SK Square and EQT plan to jointly manage SK shieldus, aiming to grow the company from Korea's No.1 security firm into a global total security company.
First of all, SK shieldus will issue new shares worth KRW 200 billion to finance its new businesses such as unmanned store and AI-based security services, which are expected to accelerate its future growth.
The company also plans to utilize the synergy with the overseas security companies invested by EQT, in order to accelerate its digital transformation, expand the subscription-based cyber/convergence security business model, and to innovate its physical security business model. EQT holds diverse companies in its portfolio including Securitas, Anticimex, CYE, and Open Systems* that are operating security businesses in North America and Europe.
? Securitas: A global physical security company with 345,000 employees in 47 countries. Securitas provides on-site and mobile security, electronic security, and corporate risk management services.
? Anticimex: A global pest control company based in Sweden, with 3 million customers in 20 countries across Europe, Asia-Pacific and North and South American Regions
? CYE: An Israeli cyber/information security company that provides AI and machine learning-based digital infrastructure security services.
? Open Systems: A Switzerland company that provides global cyber security services to global companies, non-profit organizations, and institutions in 180 countries across the world.
Meanwhile, SK Square plans to utilize the cutting-edge ICT technologies of its affiliates in the areas of AI, wired/wireless communication, and semiconductor to raise SK shieldus' technical competitiveness to match the global best-in-class.
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. With the investment from EQT, SK shieldus aims to evolve into a global total security company.
SK shieldus has expanded its businesses across four main domains such as cyber security(Infosec), converged security(AI-based converged security platform 'SUMiTS'), physical security(ADT Caps), and safety & care (unmanned store/unmanned parking, smart home safety, virus control/prevention, and senior care). SK shieldus will continue to expand new business models to maintain robust growth while accelerating its global business expansion, based on its unique AI and digital transformation technologies.
SK shieldus has subsidiaries in the US, China, and Hungary, and is exporting security control platforms while operating security services through local partnerships in Vietnam and Japan. SK shieldus plans to strengthen its global businesses by establishing a joint venture overseas or undertaking a strategic M&A in the future.
"SK Square will further enhance the shareholder value, based on its first full-cycle investment performance since the launch of the company," said Park Jung-ho, the Vice President of SK Square. "Our joint management deal with EQT will provide an opportunity to upgrade the global competitiveness of the Korean security industry."
? References (Introduction to EQT of the Wallenberg Family)
? The Wallenberg family has been the majority shareholder of global multinational companies through Investor AB, throughout five generations for the last 160 years.
? The industrial mindset and long-term investment philosophy of the Wallenberg family is deeply rooted in the corporate culture of EQT. EQT's aggressive, growth-oriented ownership approach has also been influenced by the mindset and philosophy of the Wallenberg family.
? EQT is headquartered in Stockholm and has recently opened a new office in Seoul. EQT currently has offices in 24 countries, with about 1,800 employees. It has 8 offices and about 350 employees in the Asia-Pacific region including Seoul.
? EQT's investment experts working in many countries across the globe receive support from the global EQT Network that consists of 1,000 industry advisors. The industry advisors include former or incumbent executives of companies, entrepreneurs, and industry experts, most of whom have relevance to the Wallenberg family. The industry advisors provide their expertise on the relevant industry sector, and some of the advisors are recruited as a member of the Board of Directors or the senior management of the portfolio companies invested by EQT.
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SK SQUARE CO., LTD. 
