SK Telecom, South Korea's largest wireless carrier, will acquire controlling stakes of local security firm ADT Caps, the company has announced.
The company bought a 55 percent stake in Siren Holdings Korea, which owns 100 percent of ADT Caps, for 702 billion won, while investment banking firm Macquarie Group bought 45 percent for 574 billion won.
The two bought the firm from Carlyle Group and the acquisition is expected to be completed in the third quarter this year. They saw ADT Caps valued at 2.97 trillion won, including 1.7 trillion won of debt, 11 times the firm's EBITDA.
ADT offers physical security such as building maintenance and fire prevention. It boasts 570,000 subscribers and is the second-largest security firm in South Korea, after Samsung's S-One company.
SK Telecom said it wanted to create new security services and business models with the acquisition by applying artificial intelligence, the Internet of Things (IoT), and big data to physical security.
It will also offer total care, such as checking the status of elderly and children at home and drones for factory security, the telco said.
According to Freedonia Research, South Korea's physical security market has grown 8.7 percent per year for the past 5 years. From this year to 2022, the market will grow 7 percent per year, it predicts.
Last month, SK Telecom announced it was adopting blockchain for is authentication processes.
In November, the telco deployed LTE Cat-M1 with its LoRa network to allow new competitive IoT applications.
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