SEOUL, Nov. 27 (Korea Bizwire) — SK Telecom Co., South Korea’s top mobile carrier, said Friday it will merge its security subsidiaries by the end of the first quarter of next year, in its latest move to boost business synergy.
SK Telecom said its subsidiary Life and Security Holdings, which wholly owns physical security firm ADT Caps Co., decided to merge with the carrier’s digital security subsidiary SK infosec by the end of this year.
SK infosec then plans to merge with ADT Caps by the first quarter of next year.
The carrier said it expects the merger to consolidate its security services and create the country’s top security company.
ADT Caps is South Korea’s second-largest physical security service operator with a base of 700,000 users, while SK infosec is the country’s top information security company, which offers services such as cyberattack detection, according to SK Telecom.
The carrier said it seeks to boost the merged entity’s value to 5 trillion won (US$4.5 billion) within three years after the merger and is preparing plans for an initial public offering.
The move comes as SK Telecom looks to shift beyond its focus on telecommunication operations and into new tech services.
On Thursday, SK Telecom’s shareholders approved a plan to spin off the company’s mobility business into a new company, which will pursue new mobility businesses such as ride-hailing services and flying cars.