Integrated IT solution consulting company ETECH SYSTEM has completed a large investment with SG Private Equity (SG PE). The company plans to further strengthen its established business areas such as IT strategy consulting, system integration (SI), and network integration (NI), while also expanding its investment in new business areas such as cloud and software, which are expected to grow in the future.
SG PE is a mid-sized domestic private equity fund manager that has been focusing on the companies accelerating digital transformation (DX) of industries and the explosive growth of the IT market, including AI, big data, and data traffic. While reviewing companies for investment in business areas such as SI/NI, cloud, and software, SG PE preemptively made a large-scale investment by focusing on the growth of IT systems. This investment amounted to approximately KRW 180 billion, and SG PE raised a significant portion of the amount with a newly raised fund, demonstrating its strength as a funding powerhouse that recruited other leading institutions as investors, including anchor investor Korea Growth Finance, despite the recession. SG PE believes that the IT infrastructure environment is being reshaped from the perspective of ‘hybrid cloud’, which includes on-premise (internal data center), private cloud, and public cloud, which are complementary to each other, and predicts that ETECH SYSTEM, which has been building business capabilities by forming a dedicated cloud MSP (Managed Service Provider) organization since 2015 based on its 31 years of IT experience and high understanding, will continue to achieve unparalleled growth rates.
The company’s rising valuation is largely attributed to its upwardly moving performance. Both ETECH SYSTEM and ETEVERS Group have been growing sales and operating income by more than 10% for three consecutive years. The total revenue of all ETEVERS Group companies combined increased from KRW 1,175.9 billion in 2021 and KRW 1,338.3 billion in 2022 to KRW 1,490.8 billion in 2023, and EBITDA increased to KRW 26.3 billion, KRW 39.3 billion, and KRW 49.7 billion, respectively, over the same period. ETECH SYSTEM revenue expanded from 290.9 billion in 2021 and 331.9 billion in 2022 to 415.7 billion in 2023, and EBITDA increased to 6.5 billion, 8.7 billion, and 12.8 billion over the same periods. ETECH SYSTEM’s cloud business unit grew 160% year-over-year and recorded the largest amount last year. This is due to its unique technology in hybrid cloud migration services that utilize both on-premises and public clouds. Based on over 30 years of IT experience, we have accumulated experience in operating on-premises servers, so we provide consulting optimized for cloud DX.
Through this investment, ETECH SYSTEM, which will become a core of the ETEVERS Group, will be reorganized as a parent company with ETEVERS and ETEVERSeBT as subsidiary and grandchild. The business synergies between ETECH SYSTEM and the group’s affiliates are also noteworthy. ETECH SYSTEM, which builds Amazon Web Services (AWS) cloud infrastructure directly to customers, will collaborate with ETEVERS, which owns the Korea’s domestic distributorship of AWS cloud solutions. ETEVERS Group, which includes ETEVERS and ETEVERS eBT, is the representative IT solution company in Korea that has secured the distributorship of the largest global vendors in Korea, totaling over 50, and plans to work closely with IT infrastructure consulting and SI business.
“With this investment, ETEVERS Group will focus on the group’s capabilities, such as unifying governance and streamlining decision-making centered on ETECH SYSTEM, to promote an initial public offering (IPO) in the near future,” said Joung Myoung-Choul, Chairman of ETEVERS Group. “ETEVERS Group, which has been constantly transforming with IT trend changes over the times for more than 30 years, will lay the foundation for a bigger leap forward through this investment.”
