ZTE buys Turkish ICT firm Netaş in $101m deal
Chinese vendor will take a 48% stake in the company, which was the first to make landline phones and switches in the country
ZTE has struck a $101 million deal to buy a 48% share in Turkish ICT provider Netaş Telekomunkasyon as it looks to expand into the region.
The Chinese vendor is acquiring the share from OEP Turkey Tech, a portfolio company owned by One Equity Partners, and will become the biggest shareholder in the company upon completion of the deal.
ZTE said Netaş will continue to operate as an independent company, but will gain increased access to ZTE’s portfolio of products, which includes carrier-grade infrastructure and services. In turn, Netaş’s solutions will be made available to ZTE’s international clients.
Zhao Xianming, chairman and CEO of ZTE, said: “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.”
Netaş is headquartered in Istanbul and has been making telecommunications equipment since 1967. It also has an established presence in North Africa, Asia-Pacific and the former Soviet region.
It was the first company in Turkey to made landline phones and switches, and continues to manufacture hardware, software as well as serving as the country’s largest systems integrator.
C. Mujdat Altay, CEO of Netas, said: “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."
He added: “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.”