NICE Information Acquires 96.1% Stake in KIS Information & Telecommunication for KRW 112.3B Cash – Expected to Boost Profitability with Low Valuation
Acquisition Overview: NICE Information acquires 4,491,623 shares (96.1% stake) of KIS Information & Telecommunication from parent NICE Holdings for approximately KRW 112.3 billion in cash. This represents 25.7% of NICE Information's equity.
Financial Impact: Based on KIS Information's 2025 net profit of KRW 57.25 billion, the acquisition price implies a P/E ratio of only ~1.96x, considered undervalued. The acquisition is expected to significantly boost NICE Information's consolidated profitability.
Transaction Structure: Although a related-party transaction, the all-cash acquisition avoids share issuance, eliminating dilution risk for existing shareholders. The purpose is to enhance business synergy and incorporate a subsidiary.
Financial Status: KIS Information has total assets of KRW 314.8 billion, liabilities of KRW 223.9 billion, and equity of KRW 90.9 billion. The sharp profit increase in 2025 may be partly one-off, but the low purchase price offers value.
[AI Summary]NICE Information's cash acquisition of KIS Information at a very low P/E of about 2x is expected to significantly enhance shareholder value. With no new shares issued or debt burden, the deal is positive for the stock price; if KIS Information's profitability sustains, NICE Information's EPS could increase substantially. However, investors should note the profit volatility and related-party nature of the transaction.
KOSDAQ Filing Information
Filing: Decision on Acquisition of Stocks and Investment Securities of Other Corporations
Company: NICE Information & Telecommunication (036800)
Submission: NICE Information & Telecommunication Inc.