Global private equity fund (PEF) manager KKR will invest 1.2 trillion won in Samsung SDS.
On the 15th, KKR said it signed a final agreement to acquire 1.22 trillion won (about $820 million) in convertible bonds (CB) newly issued by Samsung SDS.
The investment is part of a strategic partnership KKR is forming with Samsung SDS. KKR said it plans to support Samsung SDS's growth strategies, including M&A, while helping accelerate its leap into a comprehensive artificial intelligence (AI) solutions corporations.
Samsung SDS, an enterprise information technology (IT) solutions specialist corporations, was founded in 1985. Recently, it selected AI infrastructure and platforms as core strategic tasks and is expanding its AI transformation (AX) business.
Specifically, KKR will become a strategic advisory partner to Samsung SDS's management. It is expected to play an active role in key areas such as capital deployment and identifying global growth opportunities.
The investment will be funded by KKR's "Asia Fund IV." KKR has previously invested in Samhwa, Musinsa, HD Hyndai Marine Solution, and SK eternix.
Park Jeong-ho, KKR's country head for Korea, said, "This partnership is significant in that KKR's global experience will contribute to enhancing the corporate value of Samsung Group affiliates."
Meanwhile, the transaction is expected to close in the second quarter, subject to customary closing conditions.