Youngsoo Lee, CEO of Cloit, is making an announcement at the business briefing held on April 25th. [사진=클로잇]
Itcen Group, an IT company group, is accelerating its targeting of the domestic cloud conversion market in the second half of the year, centering on its cloud subsidiary, ‘CloIT’. Since the first half of this year, ITCEN has been carrying out the merger and acquisition process of three companies, △Cloit △CloCEN △Digiformer Sasslab, which have specialized capabilities in cloud conversion and construction platforms and software as a service (SaaS). It is expected that this process will be completed on August 3 and the corporate strategy of ‘all-in-one cloud service’ will be strengthened.
According to the industry on the 8th, Cloit is an affiliate of the ITCEN Group that runs software development, consulting and outsourcing development businesses. In May 2022, Ssangyong Information and Communication’s cloud business division was physically divided and established. According to the audit report published at the end of March this year, Ssangyong Information and Communications held 86.49% of Kloit’s shares as of the end of 2022. Kloit spent 21.8 billion won in sales, 1.8 billion won in operating loss, and 2 billion won in net loss for the eight months from May to December of last year in the financial statements of this report.
In the report’s key contract-specific information, Kloit identified businesses whose total contract revenue amount is 5% or more of sales. △2022 Hangzhou Asian Games GMS establishment and operation (by the end of 2023) △2022 Hangzhou Asian Games OVR system establishment and operation (by the end of 2023) △2022 Hangzhou Asian Games GMS establishment and operation (by the end of 2023) △2024 Paris Establishment and operation of Olympic OVR (until the end of 2024) △Hyundai Motor Digital 2 Chinese corporation Hyundai Kia establishment (until November 2023), etc.
Cloit merged with Closen, a 100% subsidiary, in April and appointed Lee Young-soo, founder of Digiformerslab, as the new CEO. It announced a cloud service business strategy that supports cloud native-based application modernization (AM) and SaaS integration and management. Based on the large-scale application system development and operation capabilities accumulated in fields such as education, public service, mobility platforms, and international sports, it decided to focus on digital conversion consulting, cloud development, and SaaS introduction and conversion projects.
The April merger was in the form of a reverse merger in which the subsidiary Closen would survive and the parent company Cloit would cease to exist. Closen was originally ‘LG Hitachi’ established in August 1986 according to a joint venture contract between LG Electronics and Hitachi of Japan. ITSCEN explained that when it acquired a 100% stake in LG Hitachi in December 2022, it was named Closen by combining the meaning of a cloud-focused business with the identity of an ITSCEN Group affiliate. However, after the reverse merger, Klosen took on the name Kloit.
On the 6th, Closen disclosed the audit report on the financial statements for the 38th business year (April 2022 to March 2023). During this period, sales were 121.3 billion won, operating loss was 1.6 billion won, and net loss was 1.2 billion won. According to the report, Closen is responding as a defendant in a 5.8 billion won damages lawsuit filed by Nonghyup and a 700 million won service fee lawsuit filed by Tsis. As a plaintiff, he is also filing a lawsuit against the head of the National Information Resources Management Institute for cancellation of the imposition of a penalty and a claim for transfer of money to the Bank District 1 Redevelopment Maintenance Project Association.
LG Hitachi to Closen, which was launched as a merged corporation in April and changed its name from Closen to Cloit, is currently undergoing evolution as an affiliate specializing in the cloud business of the ITSCEN Group. According to the 38th audit report, on May 25 of this year, all redeemable convertible preferred stocks of Digiformers Labs were converted into common stocks, and on May 30th, the board of directors decided to merge with Digiformers Labs. The merger process is expected to be completed on August 3.
Digiformer Sasslab is a startup founded in 2020 by CEO Youngsoo Lee. Digital conversion consulting and the operation of a SaaS marketplace (marketplace) called ‘SaaSlab’ have been used as main business models. CEO Lee oversaw the SaaS business before leaving Oracle Korea and served as the Korean branch manager for Informatica, Pivotal, and Salesforce. In particular, he began to pay attention to the SaaS field while leading a branch office established by Salesforce, a global SaaS company, in Korea in 2010.
The business is also expected to materialize into Kloit’s SaaS-related strategy. The hardware solution business, which has been going on since the days of LG Hitachi, such as supplying and building enterprise storage systems, is expected to provide a point of contact with customers who will provide digital transformation, cloud professional services, and application modernization expertise. At a press conference after taking office, CEO Lee Young-soo said, “We will focus our capabilities on cloud-specialized consulting, service, development, and SaaS/SaaS transformation/SaaS marketplaces in the future.”
Lee Young-soo, Cloit CEO [사진=클로잇]
Reporter Information Lim Min-cheol imc@ajunews.com
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