Samsung SDS to acquire 25 pct of Vietnam IT firm CMC

By Hung Le   May 29, 2019 | 02:47 pm GMT+7
Samsung SDS to acquire 25 pct of Vietnam IT firm CMC
Samsung signboard in Warsaw, Poland. Photo by Shutterstock/Grand Warszawski
In a strategic purchase agreement, Samsung SDS will take a 25 percent stake in leading Vietnamese IT services provider CMC Corporation.

The acquisition comes around a year after the two companies sealed an agreement to cooperate in businesses related to smart factories and cybersecurity.

The purchase is part of a strategic partnership agreement, which it hopes would accelerate its forays into Vietnam' fledgling cloud market and other markets in Southeast Asia, Samsung SDS announced early this week without disclosing the price.

It would combine its expertise in AI, big data and the Internet of Things with CMC’s business network in a country that is emerging as a manufacturing powerhouse, said Samsung SDS, the system integration arm of South Korea's electronics conglomerate Samsung. 

The two would also look to collaborate on blockchain and big data in future, it added.

"CMC is now partnering with Samsung SDS, following AT&T, Oracle, SAP and Microsoft," CMC chairman and general director Nguyen Trung Chinh said in a statement.

"The strategic ties will hugely contribute to advancing the digital economy globally."

Founded in 1993, CMC is one of Vietnam’s largest IT services companies with revenues of VND5.23 trillion ($223 million) in 2018. The Hanoi-based company has eight affiliates and 3,000 employees, and focuses on system integration, software development, cloud computing and IT infrastructure management.

The strategic partnership would also help advance CMC's goal of reaching the $1 billion sales mark by 2023, Chinh added.

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