The local office suit developer Hancom purchased the nation’s largest embedded software provider MDS Technology, according to a company statement on Friday.
Hancom acquired the software company for 74.5 billion won ($68.9 million) from international venture capital firm STIC Investments, which had bought MDS Technology in August 2010.
The company plans to expand its business beyond its conventional office program into embedded software markets.
“Considering the expansion of the domestic embedded market, this acquisition appears very successful,” said Kim Sang-chul, CEO of Hancom.
“Through this merger and acquisition, Hancom plans to become an integrated software company and to make forays into the global market,” he added.
Hancom said, “We have paid attention to the embedded software market, which is rising fast thanks to the technology development of the Internet of Things across all industries.”
Embedded software is built into vehicles, digital devices or aircrafts to control them, offering high levels of efficiency and safety.
“It is an encouraging sign for Hancom to obtain embedded software technologies whose coverage is expanding into smart cars and wearable equipment,” said Kim Kap-ho, an analyst at Kyobo Securities. “The net profit of MDS Technology will be 14 billion won next year.”