MTS to acquire billing software provider NVision for $263 million
Russia’s Mobile TeleSystems (MTS) is to purchase billing software provider NVision Group from its majority shareholder AFK Sistema in a deal valued at as much as $263 million (15 billion rubles).
The acquisition will enable MTS to reduce costs as well as gain control of NVision’s billing systems, allowing the company to reduce time-to-market for introducing products and reducing billing and IT-related expenses. MTS will acquire 100% of the shares of NVision, as well as its debt obligations.
“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 in-house IT through the realisation of economies of scale,” said AndreI Dubovskov, president and CEO of MTS.
“We expect to benefit from our entrance into the promising and fast-growing market of IT services, IT consulting and system integration, which complements our core service businesses.”
NVision reportedly has an operating loss of approximately €13 million (800 million rubles) in 2014, excluding depreciation and amortisation.
The deal is expected to be completed by the end of this year.