Netaş’s new leading shareholder is ZTE
ZTE, a multinational ICT solutions vendor, has acquired 48.04% of Netaş’s shares which are owned by OEP Turkey Tech B.V., an investment managed by One Equity Partners. The transaction will position Netaş, which is celebrating its 50th anniversary, with broader product and service capabilities to accelerate its growth in Turkey and in international markets.
ZTE (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions, through its subsidiary ZTE Cooperatief U.A., has acquired 48.04% of the shares of Netaş which are held by OEP Turkey Tech. B.V, an investment managed by One Equity Partners.
Noting that this transaction will support Netaş’s global growth, Netaş CEO C. Mujdat Altay commented: “This transaction is one of the biggest technology development investments done in Turkey within the last years. ZTE, as one of the global patent leaders in ICT, has made this investment due to the success of Turkish engineers, Turkey’s technology development capability and Netaş’s high performance which shows itself with 9 times growth since 2009. We are proud to bring such a value to our country.
Thanks to our 50 years of experience in exporting technology, we are excited to be able to further grow Netaş with the power of our new shareholder ZTE.
Netaş is the number one systems integrator in Turkey and successfully exports its technology competences to international markets. This has been witnessed with the substantial growth performance in the last 10 years. This performance will be accelerated together with our new shareholder ZTE. Netaş's highly talented human resources, solid corporate culture, agile structure and ability to adapt to changes, will provide significant contribution to global projects that we will be carried out together with ZTE.
Having the most advanced R&D capabilities in Turkey's ICT field, Netaş has realized many innovations that have been leading the sector. With the cooperation of ZTE, our global software solutions developed for more than 200 global operators, where Netaş is the "Software Exporter Champion" of Turkey 7 times in the last 10 years, will be further strengthened.
Additionally, the ULAK project which will increase our country's claim in the telecom sector, the cyber security solutions and many other products that we have locally developed, will be available for international markets with the contributions of our new shareholder ZTE.
This new era will strengthen Netaş which is becoming a global technology brand.”
Highlighting the utilization of Netaş as a regional hub to support its business in Turkey and neighboring countries, CEO of ZTE Corporation, Dr. Zhao Xianming, stated: “ZTE signs this transaction with its long-term, strategic perspective to Netaş and Turkish ICT market. Our first priority will be to support Netaş’s sustainable growth.
With Netaş’s strong project delivery capabilities, ZTE will further enhance its service capabilities to customers in Turkey as well as several key overseas markets. Netaş will increase its income and resourse utilization, while helping ZTE to elevate service levels, especially response time, in each respective region with its repair and return center, customer support center and training center functionalities.”
Dr. Zhao also outlined enhanced R&D collaborations with Netas. “ZTE welcomes collaboration between Netaş R&D center and ZTE’s R&D capabilities. Netas adds to ZTE’s existing 20 R&D institutes around the world. ZTE’s vision, knowhow and patent portfolio, along with Netaş expertise in areas of VoIP, IT, GSM-R and cyber security, among others, will bring more exciting solutions and breakthroughs to the ICT industry. ZTE shall assist Netaş further its R&D capabilities and support Netaş's current 4.5G solutions to make ULAK globally more competitive. Additionally, Netaş will not only have access to ZTE’s solutions developed for telecom service providers, public and civil institutions and consumers, it will also carry its innovative solutions such as IoT platform to ZTE’s global customer base. Netaş and its customers will also benefit from ZTE's existing project financing agreements.
Dr. Zhao reassured ZTE’s commitment to other stakeholders. “Following the transaction, Netaş shall remain committed to its corporate values, to delivering the best value and service levels to clients, to working closely with existing suppliers and shareholders, and to nurturing developed-in-Turkey innovations”.
Welcoming ZTE’s investment in Netaş, OEP Board members Andrew Dunn and Joe Huffsmith stated: “Netaş has been a tremendous success story and flagship enterprise in Turkey, growing c.400% since OEP invested 6 years ago. On our watch the Netaş team has executed a transformative acquisition to dramatically expand their ICT capabilities, has expanded internationally beyond Turkey, and has developed a service strategy yielding attractive margin increases. We are confident that with ZTE's investment, global reach and product depth, Netaş is now extremely well positioned for future success. The OEP team is committed to ensuring a smooth transition for ZTE to step into its ownership position, and we thank our incredibly talented Netaş management team, the staff and other shareholders for all their hard work and friendship over the last six years. ”
ALK acted as legal advisors to ZTE. UniCredit, Yapı Kredi Bankası A.Ş. and BDA Partners acted as exclusive M&A advisors to OEP Turkey Tech B.V. Paksoy acted as legal advisor to OEP in this transaction.
Netaş provides innovative end-to-end value added systems integration and technology services in the fields of information and communications technologies (ICT). The company holds a successful track record of c.50 years and continues its foray in the field of information technologies, supported by its experienced, best of breed R&D department. Netaş provides extensive and goal oriented solutions, ranging from technology consultancy to post-sales assistance for telecom operators, public and private enterprises in Turkey, North Africa, CIS and Asia-Pacific and furbishes the Turkish Armed Forces with next generation defense communications solutions in technologies such as mobile broadband, cyber security, cloud computing, managed and strategic services, defense communication technologies, GSM-R, ICT integration services and tailored software development solutions. Netaş is listed in Borsa Istanbul (NETAS IS). For more information please visit www.netas.com.tr/en
ZTE is a provider of advanced telecommunications systems, mobile devices, and enterprise technology solutions to consumers, carriers, companies and public sector customers. As part of ZTE’s M-ICT strategy, the company is committed to provide customers with integrated end-to-end innovations to deliver excellence and value as the telecommunications and information technology sectors converge. Listed in the stock exchanges of Hong Kong and Shenzhen (H share stock code: 0763.HK / A share stock code: 000063.SZ), ZTE’s products and services are sold to over 500 operators in more than 160 countries. ZTE commits 10 per cent of its annual revenue to research and development and has leadership roles in international standard-setting organizations. ZTE is committed to corporate social responsibility and is a member of the UN Global Compact. For more information, please visitwww.zte.com.cn.
About One Equity Partners
One Equity Partners is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. One Equity is a trusted partner with a differentiated investment process, a broad and senior team, and an extensive track record generating long-term value for its partners. Since 2001, the firm has invested in more than 140 transactions worldwide. One Equity, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York and Chicago, and an advisory office in Frankfurt. For more information, please visit www.oneequity.com.