Shares of Samsung SDS rose as much as 21.3% following a significant investment from global private equity firm KKR, which agreed to purchase $820 million in newly issued convertible bonds. This partnership is part of KKR’s strategic support for Samsung SDS as it seeks to enhance its offerings in artificial intelligence (AI) infrastructure amidst growing tech spending in this area. KKR will advise on various fronts, including mergers and acquisitions and capital allocation, to help Samsung SDS accelerate its growth as a full-stack AI solutions provider. This move aligns with Samsung SDS’s focus on AI transformation, particularly in the public sector, where it is involved in initiatives like shared AI infrastructure.
KKR: KKR is a global private equity firm that invests in growth opportunities across regions, including through its Asia Fund IV for strategic partnerships. It offers expertise in mergers and acquisitions, capital allocation, and sector-specific expansion. In this deal, KKR invested in newly issued convertible bonds by Samsung SDS and will advise on AI offerings, capital strategy, and international growth amid rising digital transformation demand.
Jun Hee Lee: Jun Hee Lee serves as President and CEO of Samsung SDS. He oversees the company’s push into AI-driven solutions and digital capabilities. He welcomed KKR as a strategic investor to explore growth avenues like M&A leveraging global capital markets expertise.
Samsung SDS: Samsung SDS is a South Korean IT solutions and logistics provider that is part of the Samsung Group and an affiliate of Samsung Electronics, delivering cloud, digital transformation, and logistics services globally. It positions itself as a full-stack AI solutions provider, encompassing infrastructure to end-user AI tools. Through the recent strategic partnership with KKR, Samsung SDS is using the investment proceeds from convertible bonds to boost AI infrastructure, pursue M&A opportunities, and drive global expansion.
Chung Ho Park: Chung Ho Park is a Partner and Head of Korea at KKR, leading investments in the region since joining the firm in 2009. He focuses on opportunities advancing local digital infrastructure. He expressed strong conviction in Samsung SDS’s market leadership for AI solutions and Korea’s digital advancement through this partnership.
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