ZTE to acquire 48% 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% 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 clear 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’ 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 gained wide acceptance 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 and to nurturing 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% 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, 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. 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.”
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.