Chinese telecom device maker ZTE plans to invest up to USD100 million to acquire a 48.04% stake in Turkish telecom device company Netas.

On the completion of the acquisition, ZTE will become the largest shareholder of Netas. The proposal has reportedly been approved by the board of directors of ZTE.

ZTE signed an equity purchase agreement with OEP Turkey Tech.B.V. via its wholly-owned subsidiary ZTE Cooperatief U.A. on December 6, 2016. Under the agreement, ZTE Cooperatief U.A. will purchase a 48.04% stake in Netas from OEP for no more than USD101,280,539. ZTE will realize the acquisition with cash payment.

Netas' main businesses cover telecom device manufacturing and sales, project installation, technical support, maintenance service, IT outsourcing service, and project delivery and related services.

ZTE said that Netas' business area and direction are highly in line with ZTE's M-ICT strategy. As one of the largest system integrators in Turkey, Netas has rich customer resources. With this acquisition, ZTE will be able to use Netas' advantageous resources to promote the company's business expansion in Turkey.