Samsung SDS, a prominent IT solutions provider and a member of the Samsung Group, announced a strategic partnership with global investment firm KKR. This collaboration involves KKR acquiring 1.22 trillion Korean Won (approximately $820 million) worth of newly issued convertible bonds from Samsung SDS. The primary goal of this investment is to strengthen Samsung SDS's infrastructure and capabilities, particularly in key growth areas like end-to-end AI transformation services.
Samsung SDS plans to leverage the funds from KKR, combined with its existing cash and cash equivalents of 6.4 trillion won, to expand investments in AI infrastructure and enhance its competitive edge in the AI transformation (AX) business. The company aims to develop a comprehensive AI full-stack, encompassing infrastructure, platforms, and solutions. Furthermore, Samsung SDS is exploring new business ventures such as physical AI and stablecoins, alongside pursuing mergers and acquisitions (M&A) to secure future growth engines and expand its global footprint.
KKR will serve as an active minority investor and provide advisory services to Samsung SDS for six years. This advisory role will cover crucial areas such as M&A, capital allocation, and identifying global growth opportunities. KKR's investment is primarily sourced from its Asia Fund IV, building on its history of investing in leading Korean companies and its global experience in the IT services sector.
Both companies emphasize that this partnership is designed to drive long-term value creation. Samsung SDS CEO Junhee Lee expressed enthusiasm for leveraging KKR's global market expertise for growth opportunities, while KKR's Jung Ho Park highlighted their intention to utilize KKR's global network and operational expertise to support Samsung SDS's next phase of growth and solidify its position in advancing Korea's digital capabilities. The transaction is expected to close in the second quarter of the current year.
