LG CNS Partners with U.S. Investment Firm Managing 175 Trillion Won for Joint AI and Software Investments

[Financial News] LG CNS is joining forces with global investment firm General Atlantic to identify and invest in artificial intelligence (AI) and software (SW) companies. The company aims to secure technologies and intellectual property (IP) from external companies and develop licensed and subscription-based software into a new growth driver alongside its IT services and AI transformation (AX) businesses.
LG CNS announced on Oct. 1 that it had signed a partnership for joint investments in enterprise technology companies at General Atlantic's headquarters in New York on Sept. 24 local time. The signing ceremony was attended by Hyun Shin-gyun, CEO of LG CNS, and Martín Escobari, co-president of General Atlantic and head of global growth assets, among others.
Enterprise technology refers to enterprise software and AI that support critical operations in industries such as manufacturing, finance, logistics and energy. The two companies will jointly identify businesses with strong growth potential in this field and review investment opportunities. Specific investment amounts and terms will be disclosed separately once the target companies are finalized.
LG CNS is particularly focused on enterprise software assets in these investments. By acquiring software assets with IP through investments and other means, the company can expand stable, recurring revenue streams from licensing and subscriptions. It can also grow its global business by combining the acquired software technologies and customer bases with its existing IT services and AX operations.
The company will make use of General Atlantic's global investment network in particular. As of the end of June, General Atlantic was a global investment firm with $130 billion in assets under management, or approximately 175 trillion won. More than 900 employees work across 20 countries worldwide, including the United States, and the firm has accumulated over 45 years of experience investing in technology companies.
LG CNS plans to expand both its investments and operations in global markets by combining its AX implementation and management capabilities developed in Korea with General Atlantic's expertise in identifying and investing in companies. Rather than limiting the partnership to financial investments, the companies will focus on creating synergies by linking the technologies and customer bases of portfolio companies with LG CNS's existing businesses.
Hyun Shin-gyun, CEO of LG CNS, said, "As AI accelerates innovation in the way companies work, proactively securing enterprise software that handles core business operations and data will serve as an important catalyst for building the foundation for future growth. Together with General Atlantic, we will secure the core business foundations that will determine future growth, combine them with LG CNS's AX capabilities and create new value for customers."


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