Kwangmoo Acquires Ubiz Solution With 23% Operating Margin, Laying Foundation for Profit Turnaround

KOSDAQ-listed company Kwangmoo is restructuring its business portfolio to focus on profitability by acquiring Ubiz Solution, a smart factory automation control solutions company, for 30.7 billion won. The strategy is to make Ubiz Solution, which boasts a high operating margin and stable financial structure, a 100% subsidiary and thereby improve consolidated results and turn a profit.

Kwangmoo announced on September 10 that it held a board meeting on September 9 and signed a stock purchase agreement (SPA) to acquire all 60,000 shares (100% stake) of Ubiz Solution, held by CEO Mi-Sook Ji and nine others, for a total of 30.7 billion won.

An initial payment of 2.6 billion won was made on the 9th, with the remaining 28.1 billion won to be paid on the 29th. Once the transaction is completed, Ubiz Solution will become a wholly-owned subsidiary of Kwangmoo.

Founded in 2008, Ubiz Solution specializes in building automated control systems for smart factories. Its main businesses include automation control, smart factory platforms, big data platforms, building and energy automation, and Good Manufacturing Practice (GMP) Validation for the pharmaceutical industry.

In particular, Ubiz Solution is equipped to provide integrated solutions involving operational technology (OT), building and energy automation, GMP Validation, and smart factory platforms. The company’s major customers include large corporations such as POSCO, SK, Dong-A Pharm, and Chong Kun Dang, which is considered a competitive advantage.

Ubiz Solution’s performance and financial condition are also stable. Last year, the company posted sales of 20 billion won, operating profit of 4.6 billion won, and net profit of 4.3 billion won. Its operating margin was 22.9%, generating about 23 won in operating profit for every 100 won of sales.

Last year’s total equity stood at 18.7 billion won, and the company held 13.5 billion won in liquid assets and short-term financial products, with no financial debt. Kwangmoo expects that incorporating Ubiz Solution, with its strong profitability and financial soundness, will significantly contribute to improving its consolidated performance.

Management continuity will also be maintained. Founder and CEO Mi-Sook Ji and Chief Operating Officer Seongjin Jeong will continue to participate in the company's management after the acquisition as Vice Chairman and Co-CEO, respectively. By retaining the current management and key personnel, Kwangmoo plans to minimize potential management gaps during the acquisition process and maintain relationships with existing clients as well as order competitiveness.

This acquisition marks the first M&A since Kwangmoo’s change of largest shareholder in April last year. Kwangmoo has been reviewing acquisition targets centered on companies with both growth potential and profitability.

An official from Kwangmoo stated, "The acquisition of Ubiz Solution will be a crucial stepping stone for Kwangmoo in achieving its vision," adding, "Through profitability-focused business restructuring, we will enhance both corporate and shareholder value and strive to meet market expectations."

The official further commented, "Rather than focusing on short-term gains, establishing a foundation for sustainable growth is our top principle."

Kwangmoo is promoting five key strategies to achieve its '2030 Vision': strengthening financial stability, growth and profitability-driven M&A, commercialization of advanced industries, ethical management, and enhancement of shareholder value. Over the past year, Kwangmoo has strengthened shareholder returns, including the cancellation of all treasury shares totaling 10.1 billion won in value.

This content was produced with the assistance of AI translation services.