KKR (NYSE: KKR) announced it will invest KRW 1.22 trillion ($820 million) in Samsung SDS through convertible bonds as part of a strategic partnership with the enterprise IT solutions company.

The investment will make KKR an active minority investor in Samsung SDS, a member of Samsung Group that provides cloud, digital transformation, artificial intelligence, and logistics services. Samsung SDS plans to use the funds alongside existing resources to strengthen infrastructure and capabilities, particularly in AI transformation services.

Under the partnership agreement, KKR will collaborate with Samsung SDS on value creation initiatives including organic and inorganic growth strategies and expansion as an AI solutions provider. KKR will also provide advisory services to Samsung SDS management in areas such as mergers and acquisitions, capital allocation, and global strategic growth opportunities.

Samsung SDS, established in 1985, employs approximately 26,000 people and reported annual revenue of KRW 14 trillion. The company serves customers across multiple industries with operations in more than 40 countries.

"This unique strategic partnership brings together Samsung SDS, part of one of Korea's most established conglomerates, with KKR's global experience in long-term value creation," said Chung Ho Park, Partner and Head of Korea at KKR.

Jun Hee Lee, President and CEO of Samsung SDS, stated the company would "actively explore a wide range of growth opportunities, including M&A, by leveraging KKR's expertise accumulated in global capital markets."

KKR is making the investment primarily from its Asia Fund IV. The transaction is expected to close during the second quarter, subject to customary closing conditions. Additional transaction details were not disclosed in the company's announcement.