ZTE to acquire 48 percent stake in Netas to support growth in Turkey and Eurasia
6 December 2016, Shenzhen, China – ZTE Corporation (0763.HK / 000063.SZ), 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 Netaş Telekomünikasyon A.Ş. (Netas).
The proposed acquisition will help strengthen ZTE’s capabilities to deliver world-class innovations in ICT to customers in Turkey and Eurasia. Netaş 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. Netaş’ research and development (R&D) center, with 800 engineers, is the largest private R&D center in Turkey.
Netaş 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 Netaş from Nortel in 2010.
Following the proposed transaction, Netaş 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 Netaş to complement and strengthen its current offerings, deliver more value to customers, and expand its customer base. Netaş’ 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, Netaş 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 Netaş. “Netaş 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 Netaş 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 Netaş: “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. 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 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 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 Netaş 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. Netaş will continue to grow as a Turkish ICT flagship company driving innovations with international reach.
About ZTE
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 providing 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 spends approximately 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 Netaş
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. Netaş is listed in Borsa Istanbul (NETAS.IS). For more information please visit www.netas.com.tr/en
About One Equity Partners
One Equity Partners (OEP) is a leading middle-market private equity firm that specializes in partnering with businesses to drive transformational change via strategic combinations. OEP seeks to work with family owners, entrepreneurs, and/or management teams operating in the healthcare, technology and tech-enabled services, and industrial sectors. Founded in 2001, OEP spun out of JPMorgan in 2015, and currently manages over $4.3 billion. OEP investment professionals are based in New York, Chicago and Frankfurt.
For more information, please visit: www.oneequity.com
