LG CNS (064400.KS) is moving to invest in global enterprise software and artificial intelligence companies in partnership with U.S. private equity firm General Atlantic. The strategy is to secure enterprise software early — a segment growing in importance as agentic AI spreads — and build synergies with the company's existing AI transformation business.
LG CNS said on Oct. 1 that it signed an agreement with General Atlantic on Sept. 24 for joint investment in enterprise technology companies. Under the pact, the two firms will jointly identify and assess potential investments in enterprise software and AI companies that support core operations in industries such as manufacturing, finance, logistics and energy. Specific investment sizes and terms will be disclosed case by case once target companies are confirmed.
General Atlantic is a global investment firm with more than 45 years of experience investing in technology companies, with $130 billion in assets under management as of the end of June this year. LG CNS plans to tap General Atlantic's global investment network to find high-quality enterprise technology companies overseas.
The joint investment is part of LG CNS's effort to build enterprise software into a new growth pillar. Beyond its existing IT services and AI transformation business, which builds and operates systems for individual clients, the company aims to diversify its portfolio by acquiring software assets backed by intellectual property. It plans to broaden a business base that generates recurring revenue through licenses and subscriptions, and to use the acquired software technology in tandem with its AI transformation business to expand globally.
The spread of agentic AI is another reason LG CNS is stepping up enterprise software investment. For AI to move beyond answering user questions and directly make and carry out business decisions, it must draw on core operating systems and data in areas such as accounting, production and logistics. Because the use of internal corporate data must also meet security and regulatory requirements, enterprise software that supports those needs is taking on a larger role.
LG CNS plans to use the enterprise software secured through the joint investment to widen its customer reach, centered on North America and extending to the Asia-Pacific region, and to seek new business opportunities.
"Securing enterprise software that handles companies' core operations and data ahead of others will be an important momentum for laying the foundation for future growth," LG CNS President Hyun Shin-kyun said. "We will combine this with LG CNS's AI transformation capabilities to create new value for customers."
