Monday, 25 September 2017

ZTE to acquire 48% of Netas

ZTE
Tuesday 06 December 16

ZTE Corporation, a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, today announced an agreement with OEP Turkey Tech B.V., a portfolio company managed by One Equity Partners, to acquire a 48 percent shareholding in Netas Telekomünikasyon A.S. (Netas). The proposed acquisition will help strengthen ZTE’s capabilities to deliver world-class innovations in ICT to customers in Turkey and Eurasia…

ZTE Corporation, a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, today announced an agreement with OEP Turkey Tech B.V., a portfolio company managed by One Equity Partners, to acquire a 48 percent shareholding in Netas Telekomünikasyon A.S. (Netas).

The proposed acquisition will help strengthen ZTE’s capabilities to deliver world-class innovations in ICT to customers in Turkey and Eurasia. Netas is a leader in Turkey’s ICT industry with audited revenue of USD371mln for the fiscal year 2015 and customers spanning telecom carriers, banks, governments and enterprises across multiple segments. Netas’ research and development (R&D) center, with 800 engineers, is the largest private R&D center in Turkey.

Netas was founded in 1967 and is traded on Borsa Istanbul. One Equity Partners, through its holding company OEP Turkey Tech B.V., acquired its stake in Netas from Nortel in 2010.

Following the proposed transaction, Netas will remain an independent company, with increased access to ZTE’s world class portfolio of products, services and solutions for telecom carriers, enterprises and governments, as well as consumers. This will allow Netas to complement and strengthen its current offerings, deliver more value to customers, and expand its customer base. Netas’ innovative solutions, which have been well received in Turkey, will be made available to ZTE’s international clients.

Dr. Zhao Xianming, Chairman and CEO of ZTE Corporation, reaffirmed Netas’ future operation. “Following the transaction, Netas shall remain committed to its corporate values to deliver the best value and service levels to clients, working closely with existing suppliers to nurture localized innovations”.

Mr. David Walsh, current chairman of Netas, welcomed ZTE’s investment in Netas. “Netas has been a tremendous success story and flagship enterprise in Turkey, growing 400 percent since OEP invested 6 years ago. The exceptionally talented team at Netas has dramatically expanded its ICT capabilities, and has expanded internationally beyond Turkey. With ZTE's investment, global reach and product depth, Netas is extremely well positioned for future success.”

Mr. C. Mujdat Altay, CEO of Netas, expressed excitement for ZTE’s investment in Netas: “As Turkey’s number one systems integrator, Netas develops software solutions for more than 160 global operators and has been named Turkey’s “Top Software Exporter” by ICT 500 Turkey Research five times. Being a technology company born and grown in Turkey, we are working diligently to become one of the 10 brands coming out of Turkey by 2023, the Centennial of the Turkish Republic, as per the initiatives set forth by the Turkish Government. With our new shareholder ZTE, we will continue to flourish and position Netas as a global technology player. Netas has been a major architect of Turkey’s digital future and we will now work with ZTE to further address the global marketplace. We will engage in an exchange of expertise with ZTE, particularly in the areas of R&D and innovation. We also believe this transaction highlights Turkey’s attractiveness as an environment for foreign investors.”

The investment in Netas will strengthen ZTE’s ability to capture opportunities generated by the Chinese government’s “One Belt, One Road” initiative and Turkish government’s plans for a strong ICT economy. Netas will continue to grow as a Turkish ICT flagship company driving innovations with international reach. 


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