Russian operator MTS is acquiring IT firm NVision for RUB15 billion ($263.4 million).
MTS has stated that the purchase will mark its “entry into the IT services market”. The operator has a pre-existing relationship with NVision, which owns and develops MTS’ billing system. The acquisition will see MTS take control of this system, allowing it “to reduce time to market for new products and reduce billing and IT-related expenses”.
Both of NVision’s current owners are subsidiaries of Sistema, which is MTS’ parent company. The operator has described the firm as “one of the largest system integrators and complex IT solutions providers in Russia.” It has clients across the telecom, energy, finance and healthcare sectors.
President and CEO of MTS Andrei Dubovskov said: “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.”
Under the terms of the agreement, MTS will also acquire NVision’s Czech unit as well as its subsidiary, Sitronics Telecoms Solutions. The deal’s initial stage has been cleared by the Federal Antimonopoly Service of Russia (FAS), as well as the equivalent authorities in Pakistan and Uzbekistan – the operating markets for NVision’s subsidiaries.