Russia’s MTS announced the acquisition of IT solutions provider NVision for a total enterprise value of RUB15 billion ($263.4 million), a move described by the operator as its “entry into the IT services market”.
NVision already owns and develops MTS’ billing system, and is “one of the largest system integrators and complex IT solutions providers in Russia”, according to the operator.
NVision is owned by two subsidiaries of Sistema, the parent company of MTS, and has a portfolio of more than 200 customers in telecoms, finance, energy and healthcare industries.
As part of the deal, MTS said in a statement it had acquired NVision subsidiaries Sitronics Telecoms Solutions and NVision Czech Republic, and obtained control over its own billing system, which will allow it “to reduce time to market for new products and reduce billing and IT-related expenses”.
Andrei Dubovskov, MTS president and CEO, talked up the benefits from entering “into the promising and fast-growing market of IT services, IT consulting and systems integration”, which “complements our core service business”.
“NVision Group’s unique expertise will enable us to accomplish three key objectives; improve service for MTS subscribers through enhancements to our billing platform, strengthen our position in the corporate market by offering clients complementary IT and integration solutions, and reduce spending on inhouse IT through the realisation of economies of scale,” he added.
MTS said the first stage of the deal had been approved by the Federal Antimonopoly Service of Russia (FAS), and antimonopoly authorities of Uzbekistan and Pakistan, where NVision’s subsidiaries operate.