Thinking globally, Samsung IT affiliates mergeSamsung SDS said yesterday it decided to merge with its IT affiliate, Samsung SNS, in a bid to bolster its global competitiveness.
The move, following the change of hands of Samsung’s fashion business between its other affiliates - from Cheil Industries to Samsung Everland - may signal more intra-group deals to come, in what is seen as Samsung’s efforts to streamline its various businesses.
Earlier in the day, the two Samsung IT affiliates held separate executor meetings and voted for the merger with a stock conversion of 2.15 Samsung NS shares to one Samsung SDS share.
The merger agreement will be signed Tuesday and finalized by the end of the year, Samsung SDS said.
Samsung SDS, the country’s largest IT service company, said that the merger with Samsung SNS, which provides network solutions using Samsung products, will create a synergy in the company’s transition from a domestic leader to a global player.
Since early this year, Samsung SDS has embarked on reorienting its business structure to give more attention to overseas markets. As part of the initiative, it created a command tower to oversee international business.
It has also worked on a smart town business in the Middle East and China, in which the company is building up an IT solution applied to the operation of large-sized complexes such as airports or facilities providing education or medical services.
Samsung SDS officials expect the merger will increase the company’s competitiveness in the smart town business by making use of Samsung SNS specialties in designing and constructing telecommunications infrastructure.
SDS’s IT infrastructure know-how will also help expand the wireless telecommunications network project pursued by SNS, they said.
“We plan to develop into a comprehensive, global ICT service firm by maximizing a business synergy from the merger,” said Samsung SDS CEO Koh Soon-dong in a statement.
By MOON GWANG-LIP [firstname.lastname@example.org]