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) based on target fund size and subject to customary regulatory approvals.
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The information contained herein does not constitute an offer to sell, nor a solicitation of an offer to buy, any security, and may not be used or relied upon in connection with any offer or solicitation. Any offer or solicitation in respect of EQT Infrastructure VI will be made only through a confidential private placement memorandum and related documents which will be furnished to qualified investors on a confidential basis in accordance with applicable laws and regulations. The information contained herein is not for publication or distribution to persons in the United States of America. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any offering of securities to be made in the United States would have to be made by means of an offering document that would be obtainable from the issuer or its agents and would contain detailed information about the issuer of the securities and its management, as well as financial information. The securities may not be offered or sold in the United States absent registration or an exemption from registration.