Rebellions, Sapeon merger agreement finalized

Industry

Rebellions, Sapeon merger agreement finalized

Published: 18 Aug. 2024, 11:19 Updated: 18 Aug. 2024, 13:34

SHIN HA-NEE
shin.hanee@joongang.co.kr

SK Telecom CEO Ryu Young-sang, left, and Park Sung-hyun, Rebellions CEO and co-founder, pose for a photo after signing a definitive merger agreement between the two companies. [SK TELECOM]

Rebellions and Sapeon, Korea's two leading AI chip designers, finalized their merger deal with a definitive agreement, the companies said Sunday.

The signing of the formal agreement came about two months after the AI chip designers announced their merger in June.

The equity value ratio between the SK Telecom-owned Sapeon and Rebellions has been set at 1 to 2.4 based on respective corporate assets and valuation.

While Sapeon will technically be the surviving entity, the company will be renamed Rebellions post-merger, with its leadership taking over management of the new company. The merged entity, which is estimated to be worth 1.4 trillion won ($1 billion), will be launched within this year.

Sapeon, founded by a consortium of SK Telecom, SK hynix and SK Square, is a subsidiary of SK Telecom. The three SK companies decided to sell a combined 3 percent stake in the merged company so that the management of Rebellions, who are co-founders of the startup, would be able to remain the largest shareholders.

SK Telecom said that it will remain a strategic investor to help the merged company expand its presence in the global AI chip market.

Rebellions, founded in 2020, launched two AI chips within its first three years and began mass production of its AI chip ATOM earlier in 2024. The company plans to launch its flagship AI chip, Rebel, by the end of this year.

The two companies reaffirmed that they will launch the new entity in a speedy manner because the next two years are a critical window for Korea to take the lead in the competitive AI chip sector.

“Signing this agreement will greatly enhance our global position in AI semiconductors, one of the key parts of the AI value chain we’re developing,” said SK Telecom CEO Ryu Young-sang in a release, adding that, “we will continue to invest strategically and work together to become a leader in the AI era.”

Rebellions CEO Park Sung-hyun, who is likely to take the helm of the new entity, said, “Our goal now is to emerge as a leading force in the worldwide AI chip market, navigating the intense industry competition.”

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]