Tuesday, November 26th, 2013
SEOUL, KOREA - A bidding war surrounding ADT CAPS, a provider of residential and small business electronic security, fire protection, and other related alarm monitoring services, is getting fiercer. The sales price is estimated at 2 trillion won.
According to investment banking sources on November 25, overseas private equity fund firms including Carlyle and CVC Capital Partners have shown interest in the deal following others such as SK Telecom, MBK Partners, and KKR Affinity Equity Partners. As a result, the deal will be pursued by six bidders from previous four.
The bidders have high hopes for the growth potential of ADT CAPS. Korea's market for security services is still underdeveloped, with only 20 percent of major developed countries. Lee Eun-jae, analyst with Samsung Securities, said, "The security service industry is one of the businesses that are not sensitive to business cycle. Given more and more people in their 50s leave their jobs and open small businesses, the demand for security services is bound to rise."