LG CNS partners with General Atlantic to invest in enterprise tech firms
Summary
LG CNS has partnered with U.S. investment firm General Atlantic to co-invest in global enterprise technology firms. The agreement was signed Sept. 24 at General Atlantic’s headquarters in New York, with the two sides seeking investments in enterprise software and AI companies. LG CNS said it wants to diversify beyond IT services and AI transformation and expand overseas, starting in North America. The company said the move is meant to secure enterprise software that can generate stable, recurring revenue.
Key Facts
- LG CNS said the size and terms of each investment will be disclosed once a target company is confirmed.
- General Atlantic manages $130 billion in assets as of June 30 and has more than 900 employees in 20 countries.
- LG CNS plans to use the partnership to add enterprise software with license and subscription revenue.
- The company said it wants to grow overseas with the acquired software technology and customer base, starting in North America and then expanding to the Asia-Pacific region.
LG CNS headquarters in Seoul / Courtesy of LG CNS
LG CNS has partnered with U.S. investment firm General Atlantic to co-invest in global enterprise technology firms, the IT services unit of Korea's LG Group said Thursday.
Enterprise technology refers to business software and artificial intelligence (AI) that support core operations in industries such as manufacturing, finance, logistics and energy.
The two sides signed the agreement Sept. 24 at General Atlantic's headquarters in New York. LG CNS President and CEO Hyun Shin-Gyoon and Martin Escobari, General Atlantic's co-president and head of global growth equity, attended the signing ceremony.
Under the deal, the two companies will look for and consider investing in enterprise software and AI companies. LG CNS said the size and terms of each investment will be disclosed once a target company is confirmed.
General Atlantic manages $130 billion in assets as of June 30. It has more than 900 employees in 20 countries and over 45 years of experience investing in technology companies.
LG CNS plans to use the partnership to diversify beyond its information technology services and AI transformation businesses. It wants to add enterprise software that brings in stable, recurring revenue through licenses and subscriptions. It also plans to use the software technology and customer base it acquires to grow overseas, starting in North America and then expanding to the Asia-Pacific region.
The company said the spread of agentic AI — systems that can make decisions and carry out tasks on their own — has made enterprise software more valuable. Such AI needs to connect with the software that manages a company's core operations and data and meet security and regulatory requirements.
"As AI speeds up innovation in the way companies work, securing enterprise software early will be an important momentum for building a foundation for future growth," Hyun said. He added that the company would combine the business foundation secured with General Atlantic with LG CNS' AI transformation capabilities to create new value for customers.
This article was published with the assistance of generative AI and edited by The Korea Times.
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