Sapeon Korea, Rebellions sign merger deal to create AI chip unicorn

[Courtesy of SK telecom Co.]

Sapeon Korea Inc., an artificial intelligence (AI) semiconductor affiliate of SK telecom Co., is expected to merge with Rebellions Inc. and become a leading AI chip firm valued over 1 trillion won ($742 million).

SK telecom announced on Sunday that it has signed a merger agreement with Rebellions. The two companies first announced their merger plans in June, aiming to strengthen their global AI infrastructure competitiveness.

Since then, they have conducted mutual due diligence and finalized the terms of the merger.

The agreed valuation ratio for the two companies is 1:2.4 in favor of Rebellions. While the surviving entity will be Sapeon Korea, Rebellions’ management team will take charge of the merged company, which will be renamed Rebellions.

Rebellions CEO Park Sung-hyun will lead the new entity.

To ensure a stable transition, shareholders of Sapeon Korea, including SK telecom, SK hynix Inc., and SK square Co., agreed to sell 3 percent of their shares before the merger, giving Rebellions’ management the position of the largest shareholder.

The key shareholders, including management from Sapeon Korea and Rebellions, also agreed not to sell their shares without mutual consent for a certain period after the merger.

SK telecom plans to act as a strategic investor, supporting the merged company’s entry into the global AI semiconductor market. Additionally, SK square and SK hynix will continue to back the company as shareholders.

“With this agreement, SK telecom will significantly enhance the global competitiveness of its AI semiconductor sector, one of the three pillars of our AI value chain,” said SK telecom CEO Ryu Young-sang. “We will continue to make proactive investments and partnerships to become a global leader in AI.”