Private equity fund operator KCGI announced on August 1 that it will acquire a 19.2% stake in Sandoll, the largest font development company in Korea and a KOSDAQ-listed firm, for 14.9 billion KRW.
On this day, KCGI stated, "On July 29, we signed a contract with Sandoll Communication, the largest shareholder, to acquire 1,492,113 common shares of Sandoll at 10,000 KRW per share." This investment will be executed with KCGI's own corporate capital, not through a private equity fund (PEF) established by KCGI.
Founded in 1984, Sandoll is a leading Korean font development company that created 'Malgun Gothic,' the default user interface (UI) font for Microsoft. Sandoll has also designed exclusive fonts for various companies such as Samsung Electronics, LG Electronics, Kakao, and Baemin. The 'Hangilche' font, used on most highway signs, road name signs, subway, and railway station signs in Korea, was jointly developed by Sandoll in collaboration with the Ministry of Land, Infrastructure and Transport, the Ministry of the Interior and Safety, and the Korea Institute of Design Promotion.
Currently, Sandoll operates a cloud-based subscription font platform called 'Sandoll Cloud,' generating stable revenue without a single deficit over the past five years through monthly or annual flat-rate subscription models. The company was listed on the KOSDAQ market in 2022, and as of last year, recorded annual sales of 15.75 billion KRW and a net profit of 5.01 billion KRW.
This investment was realized as the bereaved family of the late founder, Chairman Seok Geumho, who passed away suddenly in May last year, sought a partner to secure funds for inheritance tax and to stabilize management control. KCGI explained that, based on its extensive experience in corporate succession investments, it participated in this transaction to provide a foundation for the sustainable growth of Korea's representative font company by supporting the stable management of the existing major shareholder and to enhance Sandoll's corporate value.
A KCGI representative stated, "We plan to grow Sandoll into a global digital typography platform company, and to discover various new growth engines such as intellectual property (IP), artificial intelligence (AI), and blockchain, while respecting the founder's legacy and philosophy and pursuing continuous innovation and growth. We will also improve management transparency and practice exemplary corporate governance by sharing the fruits of improved corporate value and growth with shareholders through investments and capital reallocation focused on return on equity (ROE).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
