KKR invests $820 million to support Samsung SDS’ AI transformation, global expansion, and long-term growth strategy
KKR and Samsung SDS have announced a far-reaching strategic partnership aimed at accelerating the next phase of growth for Samsung SDS while driving sustainable, long-term value creation. The collaboration brings together KKR’s extensive global investment expertise and operational capabilities with Samsung SDS’ strong foundation in enterprise IT services, positioning the company to capitalize on the rapidly expanding demand for digital transformation and artificial intelligence (AI) solutions worldwide.
This partnership represents a significant milestone for both organizations, as they align around a shared vision of scaling innovation, expanding global reach, and strengthening competitive positioning in high-growth technology sectors. As part of the agreement, KKR—through funds under its management—will work closely with Samsung SDS across a wide spectrum of strategic initiatives. These include supporting both organic growth efforts and inorganic expansion strategies such as mergers and acquisitions (M&A), enhancing capital allocation efficiency, and identifying new avenues for value creation across global markets.
A central focus of the partnership is Samsung SDS’ evolution into a full-stack AI solutions provider. As enterprises increasingly adopt AI-driven technologies to optimize operations, improve decision-making, and enhance customer experiences, the demand for integrated, end-to-end solutions continues to rise. Samsung SDS aims to address this demand by strengthening its capabilities across the entire AI value chain, including infrastructure, platforms, applications, and services. With KKR’s support, the company is expected to accelerate its transformation into a comprehensive provider of AI-powered enterprise solutions.
In addition to strategic collaboration, KKR will assume an active advisory role, working alongside Samsung SDS’ leadership team in critical areas such as M&A strategy, financial structuring, and global expansion planning. This hands-on involvement reflects KKR’s investment philosophy, which emphasizes operational engagement and long-term partnership rather than passive capital deployment. By leveraging its global network and deep sector expertise, KKR intends to help Samsung SDS unlock new growth opportunities and navigate the complexities of an increasingly competitive and dynamic technology landscape.
As part of the transaction, funds managed by KKR have entered into definitive agreements to invest approximately KRW 1.22 trillion (around $820 million) in Samsung SDS through the acquisition of newly issued convertible bonds. This capital infusion provides Samsung SDS with substantial financial flexibility to pursue its strategic priorities, including strengthening its technological infrastructure, enhancing core capabilities, and expanding its presence in key growth areas.
The company has indicated that the proceeds from this investment, combined with its existing financial resources, will be directed toward reinforcing its leadership in areas such as cloud computing, digital transformation services, and end-to-end AI transformation offerings. These investments are expected to play a crucial role in enabling Samsung SDS to deliver scalable, high-performance solutions that meet the evolving needs of enterprise customers across industries.
Founded in 1985, Samsung SDS has established itself as a leading provider of enterprise IT solutions, offering a comprehensive portfolio that spans cloud services, digital transformation, AI, and logistics. As a key affiliate of Samsung Group, the company benefits from strong brand recognition, technological expertise, and access to a vast global ecosystem. With approximately 26,000 employees and annual revenue of around KRW 14 trillion, Samsung SDS combines scale with deep domain knowledge, enabling it to deliver complex, mission-critical solutions to clients worldwide.
In recent years, the company has placed a strong emphasis on expanding its AI transformation (AX) business, recognizing the growing importance of AI as a driver of innovation and competitive advantage. This has involved sustained investments in advanced AI infrastructure, development of proprietary platforms, and enhancement of service capabilities to support end-to-end digital transformation journeys for its customers.
Chung Ho Park, Partner and Head of Korea at KKR, highlighted the strategic significance of the partnership, noting that it brings together one of Korea’s most established technology players with a global investment firm known for its expertise in long-term value creation. He emphasized that the increasing demand for digital transformation and AI solutions presents a compelling growth opportunity for Samsung SDS, particularly as organizations across industries accelerate their adoption of advanced technologies.
Park also pointed to Samsung SDS’ critical role in advancing Korea’s digital capabilities and infrastructure, expressing confidence in the company’s ability to maintain its market leadership while expanding its global footprint. He underscored KKR’s commitment to acting as an active, hands-on investor, leveraging its global resources, local market knowledge, and operational expertise to support Samsung SDS in achieving its strategic objectives.
Jun Hee Lee, President and CEO of Samsung SDS, echoed this sentiment, describing the partnership as a significant step forward in the company’s growth journey. He noted that KKR’s extensive experience in global capital markets and its track record of supporting high-growth companies will be instrumental in helping Samsung SDS explore new opportunities, including potential M&A initiatives.
Lee further emphasized that the collaboration will enable the company to enhance its corporate value while building a stronger foundation for global expansion. By combining Samsung SDS’ technological capabilities with KKR’s strategic guidance and financial resources, the partnership is expected to create a powerful platform for sustained growth and innovation.
The investment is being made primarily through KKR’s Asia Fund IV, reflecting the firm’s continued focus on high-growth opportunities in the Asia-Pacific region. Over the years, KKR has built a strong track record of investing in leading Korean companies, demonstrating its confidence in the country’s dynamic economy and robust technology ecosystem. Notable investments include companies such as Samhwa, MUSINSA, HD Hyundai Marine Solution, and SK Eternix.
Beyond Korea, KKR has also developed significant expertise in the global IT services sector, having invested in a diverse range of companies across multiple geographies. These include FUJI SOFT in Japan, DATAGROUP in Germany, Ness Digital Engineering, Devoteam in France, and Ensono in the United States. This global experience provides KKR with valuable insights into industry trends, best practices, and emerging opportunities, which it can leverage to support Samsung SDS’ strategic initiatives.
The broader context for this partnership is the accelerating pace of digital transformation across industries, driven by advancements in cloud computing, AI, and data analytics. Organizations are increasingly seeking integrated solutions that can help them modernize their operations, improve efficiency, and unlock new sources of value. At the same time, the competitive landscape is becoming more complex, with technology providers needing to continuously innovate to stay ahead.
In this environment, partnerships that combine complementary strengths—such as technological expertise and financial acumen—are becoming increasingly important. The collaboration between KKR and Samsung SDS exemplifies this trend, bringing together two organizations with distinct but highly synergistic capabilities.
Looking ahead, the partnership is expected to play a key role in shaping Samsung SDS’ growth trajectory, enabling it to expand into new markets, enhance its service offerings, and strengthen its position as a leader in AI-driven digital transformation. By aligning around a shared vision of innovation, sustainability, and long-term value creation, KKR and Samsung SDS are well-positioned to navigate the challenges and opportunities of the evolving global technology landscape.
Ultimately, this strategic alliance underscores the growing importance of collaboration in driving technological progress and economic growth. As Samsung SDS continues to advance its capabilities and expand its global presence, the support and expertise of KKR will serve as a critical enabler, helping the company realize its full potential and deliver lasting value to its customers, shareholders, and stakeholders worldwide.
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