Valenbergi Family EQT Partners Acquires SK Shieldus

Global private equity firm EQT Partners announced on the 6th that EQT Infrastructure Fund VI (hereinafter EQT Infrastructure) has agreed to acquire SK Shieldus Co., Ltd. (hereinafter SK Shieldus) from SK Square, a key affiliate of SK Group, and the infrastructure division of Macquarie Asset Management (hereinafter Macquarie).

EQT Infrastructure purchased both a portion of the existing shares held by SK Square and all shares held by Macquarie Infrastructure Asset Management, and additionally acquired new shares to become the largest shareholder of SK Shieldus with a 68.0% stake. SK Square remains the second-largest shareholder with approximately 32% ownership.

Headquartered in Pangyo, Gyeonggi Province, SK Shieldus is an integrated security service provider with capabilities in both physical and cybersecurity, managing 680,000 commercial business facilities nationwide and operating over 100 central monitoring and security control centers.

It also offers customized “closed loop” services encompassing both physical and cybersecurity.

SK Shieldus is a company expected to grow due to Korea’s significant structural changes such as population aging, the digitalization of traditional on-site security services, and increased interest in cybersecurity.

Furthermore, by expanding public police and security services in Korea, it plays a crucial role in the national security network. The Korean security market has high entry barriers and strict regulations, making it very difficult for new players to enter. Security service providers must maintain extensive dispatch and monitoring networks to deliver high-quality services to customers.

Sangjun Seo, Head of EQT Korea and EQT Infrastructure Korea, stated, “This acquisition is EQT Infrastructure’s first investment in Korea and is announced just weeks after opening a new office in Seoul. We are very pleased to support SK Shieldus, which is solidifying its position as a leader in Korea’s physical and cybersecurity market through its partnership with SK Square, while continuously launching new digitalized security solutions and investing in the decarbonization of its operational vehicles.”

Jung-ho Park, Vice Chairman of SK Square, said, “This will be an opportunity to enhance the global competitiveness of the domestic security industry. Starting with EQT’s support and the first full-cycle investment performance since the launch of SK Square, we will actively enhance shareholder value.”

The transaction will proceed through customary conditions and approval procedures, including approval under the Foreign Investment Promotion Act, and is expected to be completed in the third quarter of 2023.

EQT Infrastructure received advisory services from Standard Chartered (finance), Kim & Chang (legal), PricewaterhouseCoopers (accounting, tax, and IT), and Boston Consulting Group (business and strategy).

With this transaction, EQT Infrastructure Fund VI has achieved an investment execution rate of 5?10%. This includes closed or signed investments and publicly disclosed deals, with syndications excluded as much as possible. The transaction is pending relevant regulatory approvals.

This content was produced with the assistance of AI translation services.