ITCEN Acquires 40% Stake in Ssangyong Information & Communications... Wings for Entry into China

[Asia Economy Reporter Lim Jeong-su] ITCEN, a KOSDAQ IT company, announced on the 19th that it will acquire a 40% stake in Ssangyong Information & Communication, held by private equity fund (PEF) operator Han & Company, for 27.4 billion KRW.

ITCEN is expanding its size through mergers and acquisitions (M&A) to become a 4th industrial revolution platform business group. Following the acquisitions of Korea Gold Exchange and Comtec System in the second half of 2018, it acquired Ssangyong Information & Communication, the first domestic IT service company, earlier this year. Ssangyong Information & Communication is recognized for its outstanding technological capabilities in defense, sports, and network integration (NI) sectors. With this acquisition, the ITCEN Group can expand its business areas not only in the public sector but also in finance, services, manufacturing, and distribution.

Along with business expansion, ITCEN surpassed 1 trillion KRW in cumulative sales by the third quarter last year. Kang Jin-mo, chairman of the ITCEN Group, stated, "We expect the group's best performance since its founding, and we have devoted considerable effort to acquiring Ssangyong Information & Communication, which possesses advanced technology and numerous overseas business achievements." He explained, "Ssangyong Information & Communication has proven global sports IT solutions and operational capabilities through building and operating information systems for various events such as the Kazakhstan Winter Asian Games, the 2015 Universiade Swimming Competition, the 2018 Jakarta-Palembang Asian Games, the Pyeongchang Winter Olympics, and the World Military Games," adding, "It is a company recognized for its unique expertise, technological capabilities, and execution ability in defense projects."

ITCEN expects this acquisition to give it wings for entry into the Greater China market. At the end of last year, it opened the way for global expansion by selling shares of its affiliate Softcen to investors in the Greater China region. Based on Ssangyong Information & Communication's overseas brand recognition and excellent technical personnel, ITCEN plans to accelerate its entry into overseas IT service markets such as the Beijing Winter Olympics. Chairman Kang expressed, "In the process of preparing for overseas expansion of ITCEN's cloud solutions and Sengold platform, acquiring Ssangyong Information & Communication will accelerate our entry into the Greater China market."

He further evaluated, "We have completed vertical integration of the IT service value chain from solutions to integrated services, as well as horizontal integration covering public, finance, defense, manufacturing, service, and distribution markets."