Samsung SDS (018260.KS) has acquired Woojung Air, a South Korean air cargo transport company, in a move expected to strengthen its air freight business.
Samsung SDS signed a share purchase agreement on the 12th to acquire a 100% stake in Woojung Air, according to information technology industry sources. Founded in 1999, Woojung Air operates an air cargo business using a consolidation model that combines multiple small shipments into a single bulk shipment. The company holds aircraft space operation contracts with major airlines and owns a logistics center at Incheon International Airport equipped with regulated agent terminal functions. It also runs its logistics business using iNomad, a digital air logistics platform it developed in-house. Last year, the company posted revenue of 213.9 billion won and operating profit of 3 billion won.
Samsung SDS began reviewing the acquisition in the first half of this year with the aim of strengthening its air cargo transport business. The company said the deal gives it integrated operations for cargo passing through Incheon airport and optimal consolidation capabilities. It also expects to improve efficiency in time and cost by providing its own security screening service using Woojung Air's regulated agent terminal facilities. Linking Woojung Air's iNomad with Cello Square, Samsung SDS's logistics automation software, is seen as another key area of cooperation between the two companies.
Samsung SDS plans to complete the remaining acquisition procedures within this year.