LG CNS to Partner With General Atlantic on Joint Investment in SW and AI Companies
IT DAILY ·
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LG CNS announced on the 1st that it had signed a joint investment partnership with General Atlantic.
The two companies will pursue the discovery of and investment in global enterprise technology companies in the SW and AI sectors.
LG CNS plans to use this to strengthen its enterprise SW business and build a foundation for global expansion.
LG CNS will pursue joint investment in global enterprise technology companies through its partnership with General Atlantic. LG CNS announced on the 1st that it had signed a joint investment partnership with General Atlantic. The company also said the move is aimed at securing a foundation for future growth.
The investment targets are global enterprise technology companies. Enterprise technology refers to enterprise SW and AI that support core business operations across industries such as manufacturing, finance, logistics, and energy. LG CNS and General Atlantic will pursue joint investments centered on this sector.
This move is part of LG CNS's strategy to strengthen its enterprise SW business in addition to its existing IT services and AX businesses. Enterprise SW businesses are characterized by stable, recurring revenue generation. Based on this, LG CNS has set a strategy to diversify its business portfolio.
The strategy also includes securing a business foundation that can expand into global markets. LG CNS pursued this partnership as part of an effort to broaden its portfolio and lay the groundwork for overseas expansion while reinforcing enterprise SW in its existing business structure.
The joint investment agreement was signed on the 24th, local time, at General Atlantic's headquarters in New York, the United States. The signing ceremony was attended by LG CNS CEO Hyun Shin-kyun and General Atlantic Co-President and Head of Global Growth Equity Martin Escobari.
Under the agreement, LG CNS and General Atlantic will pursue the discovery of enterprise technology companies in the SW and AI sectors and explore investment opportunities. The two companies plan to disclose the size and terms of each investment separately when a target company is selected.
With this investment, LG CNS plans to expand its existing enterprise SW business. The company plans to secure SW assets with intellectual property (IP) and strengthen stable revenue from license and subscription-based models. It also plans to use the acquired SW technologies and customer base to lay the groundwork for business expansion in global markets that links IT services, AX, and SW.
The spread of agentic AI is seen as a factor increasing the strategic value of enterprise SW. For AI to understand corporate operations and make autonomous decisions and execute tasks, integration with enterprise SW is essential. Enterprise SW manages a company's core operations and data and plays a role in meeting requirements such as security and regulation.
LG CNS plans to use the enterprise SW it has secured to expand customer touchpoints, focusing on the North American market, while extending its reach to Asia-Pacific and other regions and seeking new business opportunities.
LG CNS CEO Hyun Shin-kyun said that as AI accelerates the innovation of corporate work methods, the preemptive securing of enterprise SW that handles companies' core operations and data is becoming an important momentum for strengthening the foundation for future growth. He added that the company will secure core business foundations that will determine future growth together with General Atlantic and combine those foundations with LG CNS's AX capabilities to pursue the creation of new customer value.
Source: IT DAILY · Yang Seung-gap
Original: https://www.itdaily.kr/news/articleView.html?idxno=241969
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Source: IT DAILY
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