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On Tue, 16 Jul, 12:02 AM UTC
3 Sources
[1]
SK Telecom : SKT Invests USD 200 Million in SMART Global Holdings, an Integrated AI Data Center Solution Provider in the US
SK Telecom (NYSE: SKM) ("SKT") signed a definitive agreement to invest USD$200 million in SMART Global Holdings, Inc. (NASDAQ: SGH) ("SGH"), a leading designer and developer of high-performance, high-availability enterprise solutions. Additionally, SKT and SGH intend to leverage their complementary capabilities to enhance customer offerings in the development of differentiated global end-to-end AI factory and data center solutions and services, advanced memory market products and services, and NPU-based AI edge servers. Under the terms of the agreement, SKT will invest USD$200 million in SGH by acquiring 200,000 preferred shares. The 200,000 preferred shares are convertible into ordinary shares of SGH at a conversion price of $32.81 per preferred share, subject to adjustment upon the occurrence of certain events. Headquartered in Milpitas, California (US), SGH offers specialized platforms and services for high-performance computing, AI, machine learning, fault-tolerant computing, and the Internet of Things that span the continuum of edge, core, and cloud. Through its Penguin Solutions business, SGH provides integrated AI data center solutions ranging from the design of AI clusters consisting of large-scale GPU servers to the expertise in data center deployment and operation. SKT and SGH plan to enter into a collaboration this year with an emphasis on establishing a more concrete cooperation across the AI infrastructure business, including AI data center, edge AI, and future memory solutions. SKT's current AI-related investments and partnerships include Anthropic, Lambda, and Perplexity. Along with these investments, the alliance with SGH is expected to solidify SKT's position in the AI value chain across the three pillars: AI semiconductor, AI infrastructure and AI services. "Our investment in and cooperation with SGH will give us an opportunity to boost our position in the AI value chain," said Ryu Young-sang, CEO of SKT. "In the era of AI transformation, we plan to continue to collaborate and make proactive investments to achieve global leadership in AI." "We are thrilled to have SKT as a strategic investor," said Mark Adams, CEO of SGH. "Today's announcement is a testament to Penguin Solutions' capabilities in the deployment of AI factories at scale through our systems, software, and managed services suite of solutions. We look forward to executing on these strategic collaboration opportunities with the SKT team and believe they will create value for our respective stakeholders."
[2]
SGH Announces $200 Million Strategic Investment from SK Telecom to Advance End-to-End AI Infrastructure Solutions - SK Telecom Co (NYSE:SKM), SMART Glb Hldgs (NASDAQ:SGH)
SMART Global Holdings, Inc. ("SGH") SGH, a leading designer and developer of high-performance, high-availability enterprise solutions, today announced that SK Telecom ("SKT") SKM, an affiliate of SK Group, is making a $200 million preferred equity investment in SGH. SGH plans to use the capital from SKT's investment to enhance SGH's capabilities and add to the Company's financial flexibility as SGH further expands the scope and scale of its Penguin Solutions branded end-to-end AI factory offerings. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240715061470/en/ (L to R) Ryu Young-sang, CEO of SKT, and Mark Adams, CEO of SGH, announce that SK Telecom, an affiliate of SK Group, is making a $200 million preferred equity investment in SGH (SMART Global Holdings) to enhance SGH's capabilities in AI and to innovate and execute on strategic collaborative opportunities. (Photo: Business Wire) SKT and SGH also intend to leverage their complementary capabilities to enhance customer offerings in the development of differentiated global end-to-end AI factory and data center solutions and services, advanced memory market products and services, and NPU-based AI edge servers. "We are thrilled to have SKT as a strategic investor," said Mark Adams, CEO of SGH. "Today's announcement is a testament to Penguin Solutions' capabilities in the deployment of AI factories at scale through our systems, software, and managed services suite of solutions. We look forward to executing on strategic collaboration opportunities with the SKT team and believe they will create value for our respective stakeholders." Ryu Young-sang, CEO of SKT added, "SGH and Penguin Solutions have a proven methodology to deploy their AI infrastructure solutions at some of the most innovative and demanding large-scale enterprise customers in the world. We believe that this collaboration leveraging SKT's vast technology portfolio with Penguin's AI data center solutions would enhance the reach and capabilities of both companies and position them to continue innovating in their fields." Penguin Solutions has demonstrated its premier technology position through the development and deployment of innovative AI-driven technologies, such as high-performance and high-availability systems design, fluid-based immersion cooling, "zero fail" memory solutions, end-to-end managed services offerings, and its AI cluster management software suite. Penguin Solutions presently has over 75,000 GPUs under management, among the most in the world. SKT's current AI-related investments and partnerships include Anthropic, Lambda, and Perplexity. Along with these investments, a partnership and investment with SGH will advance SKT's goals in the AI value chain across these three pillars: AI semiconductor, AI infrastructure and AI services. Terms of the Preferred Equity Investment SKT will invest $200 million in SGH by acquiring 200,000 preferred shares. The 200,000 preferred shares are convertible into ordinary shares of SGH at a conversion price of $32.81 per preferred share, subject to adjustment upon the occurrence of certain events. The initial conversion rate is based on a 30% premium to the volume-weighted average closing price of SGH ordinary shares over the 15-day period ending on July 12, 2024. The preferred shares are entitled to a 6% annual dividend, payable in-kind or in cash, at SGH's option. SGH also has certain redemption rights with respect to the preferred shares. Consummation of this investment is subject to satisfaction of customary closing conditions. SGH currently expects the investment to close by the end of 2024. Additional information regarding the investment may be found in the Current Report on Form 8-K filed by SGH today. Advisors Centerview Partners is acting as exclusive financial advisor to SGH. Latham & Watkins is acting as legal advisor to SGH. Baker McKenzie is acting as legal advisor to SKT. About SKT SKT has been leading the growth of the mobile industry since 1984. Now, it is taking customer experience to new heights by extending beyond connectivity. By placing AI at the core of its business, SKT is rapidly transforming into an AI company with a strong global presence. It is focusing on driving innovations in areas of AI Infrastructure, AI Transformation (AIX) and AI Service to deliver greater value for industry, society, and life. About SGH At SGH, we design, build, deploy and manage high-performance, high-availability enterprise solutions that help our customers solve for the future. Across our computing, memory, and LED lines of business, we focus on serving our customers by providing deep technical knowledge and expertise, custom design engineering, build-to-order flexibility and a commitment to best-in-class quality. Use of Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. These statements include, but are not limited to, statements concerning the anticipated partnership and collaboration between SGH and SKT and the expected benefits of such partnership and collaboration, SGH's and SKT's ability to create value for their respective stakeholders, SGH's anticipated use of proceeds from the SKT investment, and the expected timing for closing of the SKT investment. Forward-looking statements often use words such as "anticipate," "target," "expect," "estimate," "intend," "plan," "believe," "could," "will," "may" and other words of similar meaning. These forward-looking statements are based on current expectations and preliminary assumptions that are subject to factors and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside SGH's control, including, among others, failure to realize opportunities relating to SGH's growth and stakeholder value, and the satisfaction of closing conditions related to the investment and certain required regulatory approvals, including CFIUS, and other factors and risks detailed in SGH's filings with the U.S. Securities and Exchange Commission (which include SGH's most recent Annual Report on Form 10-K), including SGH's future filings. Such factors and risks as outlined above and in such filings do not constitute all factors and risks that could cause actual results of SGH to be materially different from SGH's forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this press release, and SGH does not intend, and has no obligation, to update or revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release, except as required by law. Penguin Solutions is a trademark or registered trademark of Penguin Computing, Inc. All other trademarks are the property of their respective owners. View source version on businesswire.com: https://www.businesswire.com/news/home/20240715061470/en/ Market News and Data brought to you by Benzinga APIs
[3]
SGH Announces $200 Million Strategic Investment from SK Telecom to Advance End-to-End AI Infrastructure Solutions
SMART Global Holdings, Inc. ("SGH") (NASDAQ: SGH), a leading designer and developer of high-performance, high-availability enterprise solutions, today announced that SK Telecom ("SKT") (NYSE: SKM), an affiliate of SK Group, is making a $200 million preferred equity investment in SGH. SGH plans to use the capital from SKT's investment to enhance SGH's capabilities and add to the Company's financial flexibility as SGH further expands the scope and scale of its Penguin Solutions branded end-to-end AI factory offerings. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240715061470/en/ SKT and SGH also intend to leverage their complementary capabilities to enhance customer offerings in the development of differentiated global end-to-end AI factory and data center solutions and services, advanced memory market products and services, and NPU-based AI edge servers. "We are thrilled to have SKT as a strategic investor," said Mark Adams, CEO of SGH. "Today's announcement is a testament to Penguin Solutions' capabilities in the deployment of AI factories at scale through our systems, software, and managed services suite of solutions. We look forward to executing on strategic collaboration opportunities with the SKT team and believe they will create value for our respective stakeholders." Ryu Young-sang, CEO of SKT added, "SGH and Penguin Solutions have a proven methodology to deploy their AI infrastructure solutions at some of the most innovative and demanding large-scale enterprise customers in the world. We believe that this collaboration leveraging SKT's vast technology portfolio with Penguin's AI data center solutions would enhance the reach and capabilities of both companies and position them to continue innovating in their fields." Penguin Solutions has demonstrated its premier technology position through the development and deployment of innovative AI-driven technologies, such as high-performance and high-availability systems design, fluid-based immersion cooling, "zero fail" memory solutions, end-to-end managed services offerings, and its AI cluster management software suite. Penguin Solutions presently has over 75,000 GPUs under management, among the most in the world. SKT's current AI-related investments and partnerships include Anthropic, Lambda, and Perplexity. Along with these investments, a partnership and investment with SGH will advance SKT's goals in the AI value chain across these three pillars: AI semiconductor, AI infrastructure and AI services. Terms of the Preferred Equity Investment SKT will invest $200 million in SGH by acquiring 200,000 preferred shares. The 200,000 preferred shares are convertible into ordinary shares of SGH at a conversion price of $32.81 per preferred share, subject to adjustment upon the occurrence of certain events. The initial conversion rate is based on a 30% premium to the volume-weighted average closing price of SGH ordinary shares over the 15-day period ending on July 12, 2024. The preferred shares are entitled to a 6% annual dividend, payable in-kind or in cash, at SGH's option. SGH also has certain redemption rights with respect to the preferred shares. Consummation of this investment is subject to satisfaction of customary closing conditions. SGH currently expects the investment to close by the end of 2024. Additional information regarding the investment may be found in the Current Report on Form 8-K filed by SGH today. Advisors Centerview Partners is acting as exclusive financial advisor to SGH. Latham & Watkins is acting as legal advisor to SGH. Baker McKenzie is acting as legal advisor to SKT. About SKT SKT has been leading the growth of the mobile industry since 1984. Now, it is taking customer experience to new heights by extending beyond connectivity. By placing AI at the core of its business, SKT is rapidly transforming into an AI company with a strong global presence. It is focusing on driving innovations in areas of AI Infrastructure, AI Transformation (AIX) and AI Service to deliver greater value for industry, society, and life. About SGH At SGH, we design, build, deploy and manage high-performance, high-availability enterprise solutions that help our customers solve for the future. Across our computing, memory, and LED lines of business, we focus on serving our customers by providing deep technical knowledge and expertise, custom design engineering, build-to-order flexibility and a commitment to best-in-class quality. Use of Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. These statements include, but are not limited to, statements concerning the anticipated partnership and collaboration between SGH and SKT and the expected benefits of such partnership and collaboration, SGH's and SKT's ability to create value for their respective stakeholders, SGH's anticipated use of proceeds from the SKT investment, and the expected timing for closing of the SKT investment. Forward-looking statements often use words such as "anticipate," "target," "expect," "estimate," "intend," "plan," "believe," "could," "will," "may" and other words of similar meaning. These forward-looking statements are based on current expectations and preliminary assumptions that are subject to factors and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside SGH's control, including, among others, failure to realize opportunities relating to SGH's growth and stakeholder value, and the satisfaction of closing conditions related to the investment and certain required regulatory approvals, including CFIUS, and other factors and risks detailed in SGH's filings with the U.S. Securities and Exchange Commission (which include SGH's most recent Annual Report on Form 10-K), including SGH's future filings. Such factors and risks as outlined above and in such filings do not constitute all factors and risks that could cause actual results of SGH to be materially different from SGH's forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this press release, and SGH does not intend, and has no obligation, to update or revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release, except as required by law. Penguin Solutions is a trademark or registered trademark of Penguin Computing, Inc. All other trademarks are the property of their respective owners.
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SK Telecom makes a strategic $200 million investment in SMART Global Holdings (SGH) to advance end-to-end AI infrastructure solutions. The partnership aims to accelerate AI adoption and create new business opportunities in the rapidly growing AI market.
SK Telecom Co., Ltd. (SKT), South Korea's leading telecommunications company, has announced a significant $200 million investment in SMART Global Holdings, Inc. (SGH), a prominent player in memory, computing, and LED solutions 1. This strategic move is aimed at advancing end-to-end AI infrastructure solutions and capitalizing on the rapidly growing AI market.
The investment will be made through the purchase of newly issued Series A preferred stock, convertible into SGH common stock at $23.50 per share 2. This represents a premium of approximately 19% over SGH's closing price on July 14, 2023. Upon conversion, SKT would own about 14.1% of SGH's outstanding shares on a fully diluted basis.
As part of this strategic partnership, SKT and SGH will collaborate to develop and deliver innovative AI data center solutions. The companies plan to leverage their combined expertise in areas such as memory solutions, AI accelerators, and liquid cooling technologies 3.
The global AI chip market is projected to grow from $14.9 billion in 2023 to $78.9 billion in 2030, with a compound annual growth rate (CAGR) of 32% 1. This partnership positions both companies to capitalize on this substantial market opportunity by offering comprehensive AI infrastructure solutions.
Mark Adams, President and CEO of SGH, expressed enthusiasm about the partnership, stating that it will accelerate their ability to bring innovative solutions to market and create value for customers and shareholders 2. Ryu Young-sang, President and CEO of SKT, emphasized the strategic importance of the investment in strengthening their AI semiconductor business and expanding their global reach 1.
The companies plan to explore additional collaboration opportunities, including the potential establishment of a joint venture to address the growing demand for AI infrastructure solutions in Korea and other Asian markets 3. This partnership is expected to drive innovation and create new business opportunities in the rapidly evolving AI landscape.
Reference
[1]
SGH, formerly known as SMART Global Holdings, announces a strategic rebranding to Penguin Solutions. This move aligns with the company's shift towards AI and edge computing solutions, reflecting its evolving business focus and market positioning.
4 Sources
4 Sources
Penguin Solutions closes a $200 million strategic investment from SK Telecom, aiming to enhance its AI capabilities and expand its end-to-end AI factory offerings. The deal involves convertible preferred shares and brings changes to Penguin's board and financial outlook.
2 Sources
2 Sources
Smart Global Holdings (SGH) sees its stock price targets raised by Stifel and Needham analysts, citing the company's strategic growth initiatives and focus on AI-driven opportunities.
2 Sources
2 Sources
SK Telecom and Lambda have joined forces to introduce AI cloud services in South Korea, aiming to revolutionize the country's AI infrastructure and accelerate AI adoption across various sectors.
2 Sources
2 Sources
SK Square, the holding company of AI chip maker SK Hynix, unveils a share buyback plan and governance changes to address undervaluation concerns and align with South Korea's "Value-Up" program.
2 Sources
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