ICTK Expands Security Business With WithNetworks Acquisition
ICTK, a quantum-security fabless semiconductor company, is set to expand its business scope by acquiring WithNetworks, a specialist in network and cybersecurity services. The move represents the company’s ambition to evolve beyond its core expertise in security chips into an integrated security busi
Quantum-security semiconductor firm ICTK is broadening its horizons by acquiring WithNetworks, a specialist in network and cybersecurity services. This acquisition, announced on October 1, aims to diversify ICTK's offerings, expanding its scope from security chips to include network equipment and security solutions. ICTK will take a 56.75% stake in WithNetworks, securing the largest share and positioning itself as the largest shareholder.
The total acquisition cost is estimated at 11.4 billion won, or approximately $8.38 million, funded through convertible bonds issued in May.
ICTK's strategy revolves around a "two-track growth approach," combining its existing strengths in security chips and intellectual property with WithNetworks' expertise in network and cybersecurity services. While ICTK will continue supplying security chips and post-quantum cryptography (PQC) technologies to global tech giants and physical AI manufacturers like robotics, drones, and autonomous driving firms, it will also integrate its security technologies into WithNetworks' network equipment and solutions.
This move targets the service provider market, including telecommunications carriers, public institutions, and financial firms. WithNetworks, the acquired company, serves over 5,000 customers, including telecom carriers and public entities, boasting a stable revenue base of more than 30 billion won annually over the past three years.
ICTK plans to leverage WithNetworks' existing customer channels and operational expertise to secure commercialization pathways for its security technologies. Specifically, the company intends to integrate its PUF security chips and post-quantum cryptography (PQC) technology into WithNetworks' Wi-Fi 7-based wireless LAN solution AiriX and its integrated asset and vulnerability management platform VTM.
This integration aims to differentiate the products and meet the evolving security standards set by the National Intelligence Service, which plan to transition to PQC in 2027, with mandatory implementation by 2029.
The acquisition also aligns with shifts in security policy and the growing importance of hardware security in the market. ICTK aims to implement a hardware root of trust (HRoT) through AiriX access points equipped with its security chips, creating a security framework that prevents unauthorized device access at the hardware level.
This strategy is expected to enhance the company's competitiveness by meeting the advanced security standards required by domestic and international telecommunications carriers. Both companies are set to expand their reach in global markets, focusing on offering security-enhanced AiriX to telecommunications carriers, targeting enterprise and public-sector markets with the VTM solution, and continuing to supply security chips and intellectual property to global tech firms and manufacturers, creating a three-pillar portfolio.
ICTK's CEO, Lee Jeong-won, emphasized that the combination positions the company to establish a PQC transition support framework, integrating security from the hardware root of trust in the chip through devices and networks, targeting markets both domestically and internationally to drive new growth opportunities.
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