SK Networks acquires En-core, a data solutions and consulting firm, in an evolution towards becoming a Data-driven Company!
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2023-07-21
- Resolved on acquiring a controlling stake of 88.47% in En-core representing the data management solutions industry
- Taking note of the target company’s strengths in full-stack data management solutions & growth potential of the industry
- Integrating data infrastructure of the parent company and its subsidiaries… expecting growth in the AI sector
Continuing to invest in promising industries associated with significant future growth potential, SK Networks has decided to acquire En-core, a company that is spearheading the data management market of Korea. The strategic acquisition is aimed at strengthening data management that underpins customer services, facilitating infrastructure integration across the parent company and its subsidiaries, and creating synergy with cutting-edge technologies such as AI (artificial intelligence).
SK Networks (CEO: Ho Jeong Lee) announced that its board met on the 21st to approve the purchase of 88.47% stake (213,304 shares) of En-core Co., Ltd. at 88.47 billion won. Due diligence will be conducted going forward and follow-up steps including the signing of a stock purchase agreement will be wound up within this year.
A specialized data company incorporated in 1997, En-core engages in data management consulting and solution business covering a variety of partners. When it comes to data management solutions accounting for its core business, En-core boasts of an unparalleled industry-leading competitive edge with its full-stack service portfolio. It is the only company in Korea offering nine different solutions across the entire spectrum of data management including modeling, _data, and quality management. En-core serves over 500 customers in various industrial domains such as telecommunication, finance, and mobility.
SK Networks’ acquisition was driven by the expectation of a high growth potential of the data industry besides the aforementioned strengths of En-core. According to a release by the European Commission last year, the global data industry has posted 12% YoY growth on average from 2018 to 2022, with even higher growth rate (13%) likely to be seen by 2030. The Korea Data Agency (KDA) also expects the domestic data market to grow on annual average of 13% by 2028, another testimony in favor of a bright prospect of the industry.
Upscaling its presence as a business-oriented investment company, SK Networks has continued to invest in promising data and AI-related tech firms in Korea and elsewhere since 2020, including hyper-scale datacenter funding to AI-based device startup Humane, unmanned tractor automation solution provider Sabanto, and smart farm startup Source.ag to name a few. SK Networks even discussed possible collaboration initiatives with OpenAI CEO Sam Altman in June. Deciding to acquire En-core in consistency with such moves, SK Networks is expected to access a new revenue stream associated with unrivalled prowess in data management technology which will improve the value of its business portfolio, as well as creating synergy by integrating data infrastructure of the parent company and SK Rent-a-car, SK Magic, SK Electlink, etc. Moreover, access to big data will lead to more success in the AI sector and additional investment opportunities.
“As businesses are using data for increasingly more sophisticated applications, data management, though invisible, will be regarded as a key foundational business service, irrespective of industries,” an official at SK Network said. “We will evolve towards becoming a Data-driven Company strong in data management by enhancing services interfacing with AI at enterprise level.”