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MTS sells 100% of the system integrator NVision Group to Sistema PJSFC

November 3, 2020|
39

MTS announced the sale of 100% of the system integrator NVision Group to its largest shareholder, Sistema PJSFC. The value of the deal is 401 million rubles. But the final value may be adjusted depending on the revised financial results as of the date of deal closure, the operator stated in a press release.

MTS sells NVision Group’s systems integration assets, excluding those used in the development of the MTS’s product portfolio. MTS will also retain the FORIS BSS/OSS billing system that was earlier an asset of NVision Group.

The mobile operator acquired NVision Group from Sistema in 2015. Initially, it was reported that the company would cost the operator up to 15 billion rubles. However, MTS later indicated that it had paid 11.2 billion rubles for the asset.

According to the representative of MTS Alexey Merkutov, the difference between the current valuation of NVision Group and the amount that the operator paid for the company five years ago is due to the fact that MTS retains a billing system that allows invoicing for communication services to subscribers and formed the basic value of the asset in 2015. Merkutov noted that the main purpose of the NVision Group acquisition had been the integration of its own billing system into the MTS perimeter.

According to Merkutov, the sale of the remaining part of NVision Group is due to the fact that the company’s assets “are not related to the formation of a product portfolio, require additional investments and are not considered a priority in terms of implementing the company’s strategy”.

Original (in Russian)

Subject:

#deals

Companies:

#MTS#Sistema

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