The Samsung exhibition stand includes South Korean company Samsung Electronics’ flagship “A New Era of Mobile Agentic AI” slogan.
Joan Cros | Nurfoto | getty images
Shares of Samsung SDS rose 21.3% on Wednesday after global private equity firm KKR agreed to invest 1.22 trillion won ($820 million) in newly issued convertible bonds from the South Korean IT solutions and logistics provider.
The deal comes as technology companies are increasing spending on AI infrastructure and digital transformation, with Samsung positioning itself to capture growing demand for SDS artificial intelligence services.
Samsung SDS, part of Samsung Group and an affiliate of Samsung Electronics, said in a statement that KKR will advise on mergers and acquisitions, capital allocation, artificial intelligence offerings and global expansion.
Jun Hee Lee, Chairman and CEO of Samsung SDS, said, “Through this strategic collaboration, we will actively explore a wide range of growth opportunities, including M&A, by leveraging KKR’s accumulated expertise in the global capital markets.”
The proceeds will also accelerate Samsung SDS’s investments in AI infrastructure and strengthen its expansion as a full-stack AI solutions provider.
A full-stack AI solutions provider builds and delivers every part of an AI system – from basic computers and data storage to the ready-to-use AI tools on which companies actually run their business.
Samsung SDS also provides traditional cloud, digital transformation and logistics services to a global customer base across various industries.
Shares of Samsung Electronics were trading up about 4% in South Korea on Wednesday, helped by a rise in US technology stocks overnight.
“Against the backdrop of digital transformation and growing demand for AI solutions, we have strong confidence in Samsung SDS’s market leadership and growth potential by playing a key role in advancing Korea’s digital capabilities and infrastructure,” said Chung Ho Park, partner and head of Korea at KKR.
KKR said the investment will come primarily from its Asia Fund IV, and the transaction is expected to close in the second quarter.
— CNBC’s Justina Lee contributed to this report.
