ZTE to become new Netaş shareholder
ZTE, a multinational ICT solutions vendor, has entered an agreement to acquire 48.04% of Netaş’s shares which are owned by OEP Turkey Tech B.V., a portfolio company managed by One Equity Partners. This transaction remains subject to the Turkish Competition Authority’s approval. The transaction will position Netaş with broader product and service capabilities to accelerate its growth in Turkey and internationally.
6 December 2016, Istanbul - ZTE (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, has entered into an agreement to acquire 48.04% of the shares of Netaş which are held by OEP Turkey Tech. B.V, a portfolio company managed by One Equity Partners, through its subsidiary ZTE Cooperatief U.A. The transaction is pending approval by the Turkish Competition Authority.
Netaş is Turkey’s leading digital transformation company and this transaction will equip Netaş with additional technologies to provide more services and solutions to its customers and to expand its geographic reach. This transaction reinforces the company’s solid corporate structure, and will accelerate its focus on R&D, innovation and best of breed next generation technology know-how.
Noting that this transaction will support Netaş’ global growth, Netaş CEO C. Müjdat Altay commented: “As Turkey’s number one systems integrator, Netaş 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. Netaş is 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, the multinational ICT solutions and technology vendor, we will continue to flourish and position Netaş as a global technology player.
Netaş 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 know-how 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.”
Highlighting the utilization of Netaş as a regional hub to support its business in Turkey and neighboring countries, Chairman and CEO of ZTE Corporation, Dr. Zhao Xianming, stated: “With Netaş’ strong project delivery capabilities, ZTE will further enhance its service capabilities to customers in Turkey as well as several key overseas markets. Repair and return center, customer support center and training center functionalities at Netaş will help ZTE elevate service levels, especially response time, in each respective region.”
Dr. Zhao also outlined enhanced R&D collaborations with Netas. “ZTE welcomes collaboration between Netaş R&D center and ZTE’s R&D capability. 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 from technical assistance to product development with know-how transfer, hardware and software review, testing instruments and environment, knowledge base in interoperability, volume discounts for component purchases, documentation, etc.”
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 to nurturing developed-in-Turkey innovations”.
Welcoming ZTE’s investment in Netaş, current Chairman of Netaş Mr. David Walsh, stated: “Netaş has been a tremendous success story and flagship enterprise in Turkey, growing c.400% since OEP invested 6 years ago. The exceptionally talented team at Netaş has dramatically expanded their ICT capabilities, and has expanded internationally beyond Turkey. With ZTE's investment, global reach and product depth, Netaş is extremely well positioned for future success.”
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 visit www.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
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