April 14 (Reuters) - Investment firm KKR said on

Tuesday it will buy $820 million in newly issued convertible

bonds of IT services firm Samsung SDS, an affiliate

of Samsung Electronics ( SSNLF ).

* As part of the deal, KKR will take an active advisory role

with Samsung SDS's management, including on mergers and

acquisitions and capital allocation.

* Samsung will use the investment to build its

infrastructure and expand its artificial intelligence services.

* "We have strong conviction in Samsung SDS' market

leadership and growth potential by playing a critical role in

advancing Korea's digital capabilities and infrastructure," said

Chung Ho Park, head of KKR in Korea.

* Jun Hee Lee, CEO of Samsung SDS, said: "Through this

strategic collaboration, we will actively explore a wide range

of growth opportunities, including M&A."

* The companies expect the transaction to close in the

second quarter. KKR said the investment will be made primarily

from its Asia Fund IV.