KKR announced it has entered into a strategic partnership with Samsung SDS, committing KRW 1.22 trillion, approximately $820 million, through convertible bonds as it becomes an active minority investor in the company.
The partnership is designed to support Samsung SDS’ next phase of growth and long-term value creation, with a strong focus on expanding its capabilities as a full-stack AI solutions provider. The companies plan to collaborate across a range of initiatives, including organic and inorganic growth strategies, global expansion, and entry into new business areas.
As part of the agreement, KKR will take on an active advisory role, working closely with Samsung SDS’ management team on areas such as mergers and acquisitions, capital allocation, and broader strategic growth opportunities. The investment will also help Samsung SDS strengthen its infrastructure and capabilities, particularly in key growth areas like end-to-end AI transformation services.
Founded in 1985, Samsung SDS provides enterprise IT solutions spanning cloud, digital transformation, artificial intelligence, and logistics. With approximately 26,000 employees and annual revenue of KRW 14 trillion, the company has been expanding its AI transformation business through continued investment in infrastructure and platforms.
This investment is being made primarily through KKR’s Asia Fund IV and builds on the firm’s history of investing in Korean companies as well as its broader experience in the global IT services sector. The transaction is expected to close in the second quarter, subject to customary conditions.
KEY QUOTES:
“This unique strategic partnership brings together Samsung SDS, part of one of Korea’s most established conglomerates, with KKR’s global experience in long-term value creation. Against a backdrop of increasing demand for digital transformation and AI solutions, we have strong conviction in Samsung SDS’ market leadership and growth potential by playing a critical role in advancing Korea’s digital capabilities and infrastructure. We look forward to leveraging KKR’s global network, deep local experience, and operational expertise to take the Company to its next stage of transformation as hands-on, active investors to drive long-term value creation for all shareholders and stakeholders.”
Chung Ho Park, Partner and Head of Korea, KKR
“We are delighted to welcome KKR as a strategic investor as we continue to advance our growth strategy. Through this strategic collaboration, we will actively explore a wide range of growth opportunities, including M&A, by leveraging KKR’s expertise accumulated in global capital markets. Through cooperation between the two companies, we will continue to work closely together to enhance Samsung SDS’ corporate value and strengthen its foundation for global growth.”
Jun Hee Lee, President and CEO, Samsung SDS
