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S. Korea’s KT Corp. Acquires Epsilon Telecommunications to Expand Global Presence and Accelerate Digital Transformation
KT Corp. and Daishin Private Equity have acquired Epsilon Global Communications, the Singapore-headquartered telecommunications business. 

The acquisition matches Epsilon’s agile innovation in international networking with KT’s world-class telecommunications services, customers, leadership, and resources.

Read the full press release here

1. Why is KT Acquiring Epsilon?

Epsilon has been acquired by KT because of its global network reach, exceptional specialist teams, and its innovative technologies including its Network as a Service (NaaS) platform Infiny. This acquisition will expand KT’s global capabilities and provide new levels of automation and orchestration in networking to new and existing customers.

By acquiring Epsilon, KT immediately expands its international networking capabilities as well as its ability to enable global digital transformation for enterprise customers.

2. What does the acquisition mean for Epsilon’s operations?

Epsilon will continue to operate as a separate entity under the Epsilon brand. It will have a separate Board of Directors and will reference Epsilon as part of the KT Group.  

3. What will happen to the team at Epsilon?

There will be no changes to the operations of Epsilon or its employees. It is business as usual. 

4. Who will lead Epsilon’s business going forward?

There will be no changes to Epsilon’s management team. It will remain in place and work with the Board of Directors made up of Epsilon Management and KT Executive Directors in the development plans to grow the business both organically and through acquisition.

5. What will happen to Epsilon’s current customers?

It is business as usual for Epsilon’s current customers. There will be no disruption or change to their services. They will continue to procure and manage their services as they always have.

If customers have any questions or concerns, they should be raised directly with their Epsilon account managers. They will be available to answer any questions and provide any necessary support.

6. How will Epsilon’s customers benefit from the acquisition?

The acquisition provides Epsilon with new levels of resources that will be used to offer customers new services and capabilities. Customers will benefit from the same standards of customer service excellence combined with the support of a globally recognised leader in telecommunications.

7. What are the benefits of making this acquisition?

KT gains connectivity to over 250 of the world’s leading communications and technology hubs in 41 cities, with extensive presence across the Asia-Pacific including Mainland China. It also benefits from Infiny, an award-winning NaaS platform, that provides data centre interconnection, cloud connectivity, access to internet exchanges and global inbound numbers.

KT will be able to offer its customers enhanced international networking services to support their global business plans.

Most importantly, KT adds an exceptional team of highly skilled specialists in global networking. It immediately gains the support of dedicated and passionate teams across the globe.

8. Why was the timing right for this acquisition?

Epsilon’s plans are based on innovation and enhancement of the service portfolio to address customer requirements. When this opportunity was made available, it fit Epsilon’s strategic goals to accelerate the developments in the business. The timing was right to elevate Epsilon with new resources and leadership support.

For KT, this is an opportunity to expand its global presence and support new and existing customers with agile and innovative network services. It recognised the potential of supporting global digital transformation with new levels of automation and orchestration in networking.

9. How important is the international networking market to KT?

Expanding its presence in international networking is an important next step for KT’s business. As cloud and digital transformation strategies mature globally, it makes sense to scale-up international networking capabilities. At the same time, KT is a digital platform-focused business and Epsilon enables the company to not just grow its reach but add a NaaS platform to its offering. Agile global networking is critical to success in digital transformation.    

10. How much international presence does KT have?

KT is the number one telecommunications/IPTV/IDC service provider in South Korea with 100% nationwide coverage and 13 hyperscale data centres. KT has corporate entities or operations spanning Africa, Asia, Europe, and the US. It has 28 points of presence (Data and IP PoPs) in 12 countries globally and, two international data centres backed by 20+ Tbps of capacity over eight international subsea cable systems. KT's network coverage has over 2,000+ nodes through partners' NNI connections to provide end-to-end data transmission, and KT operates one of the largest global IP Networks, in size, in the world providing IP access services to customers around the world.

11. What will the next three to six months look like for Epsilon post-acquisition?

Over the next three to six months, Epsilon will continue to focus on growing its partnerships and relationships globally and serving an increasingly dynamic enterprise market. It has been successful in launching and growing its multi-cloud offering and is seeing more enterprises choose its SD-WAN services. Epsilon will work in collaboration with KT to realise new synergies while delivering customer service excellence to new and existing customers.