One Equity Partners has sold its stake in Netaş to ZTE Corp for $101 million. Based in Turkey, Netaş is a provider of systems integration and technology services for public and private telecommunications companies.
NEW YORK – August 2, 2017 – One Equity Partners, a middle market private equity firm, today announced that it has exited Netaş a managed investment (“Netaş” or “the Company”), and Turkey’s leading technology and telecommunications systems integration and software development company. The interest was sold to ZTE Corp., a Chinese multi-national telecommunications equipment and systems business serving the Mobile Internet, for $101 million, subject to certain adjustments.
Headquartered in Istanbul and founded in 1967, Netaş’ is the number one system integrator in Turkey. The Company’s workforce of more than 1,000 employees provides a wide range of systems integration and technology services for public and private telecommunications companies, including outsourced technical support and software development services. The investment managed by One Equity Partners was acquired from Nortel Networks in October 2010.
“We executed a transformative acquisition in Turkey to drive further growth and together with Netaş’ management team developed a service strategy that resulted in attractive margin increases, while supporting the Company’s expansion into key regional markets,” said Andrew Dunn, Managing Director at One Equity Partners. “Netaş is extremely well positioned for further growth through ZTE’s investment, global operations and product depth.”
During One Equity Partners’ management of the investment into Netaş, the company grew by more than 400 percent and expanded its suite of products and services in Turkey and globally. Netaş, which has the most advanced R&D capabilities in Turkey’s information and communications technologies sector, is celebrating its 50th anniversary in 2017.
“We’re pleased with the significant value that we and the management team have created for the Company and all investors during our investment management period at Netas,” said Joseph Huffsmith, a Managing Director at One Equity Partners. “With the resources of ZTE, we would expect the Company’s ability to provide exceptional technology solutions and services to its customers will only be enhanced.”
One Equity Partners has strong experience investing in technology and technology-enabled service businesses, including its recently signed transaction with Sanken North America, the owner of two semiconductor businesses; Lutech, a leading mid-sized IT system integration and solutions provider; and, Zodiac Interactive, a rapidly-growing supplier of cloud and embedded software platforms to multichannel video programming distributors.
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.
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