MTS acquires telecom & CPaaS provider MTT

Mobile TeleSystems PJSC, announces the 100% acquisition of Multiregional TransitTelecom OJSC for RUB 5.0 bn (on an enterprise value basis). MTT is one of the top-10 largest telecom companies in Russia and a leading provider of intelligent connectivity solutions for businesses.

Beyond offering traditional B2B/B20 telecom interconnect services, MTT is a major player in the promising communications-platform-as-service (CPaaS) space. The company provides a wide range of advanced CPaaS solutions for SME and enterprise clients, including cloud-based phone systems (virtual PBX) as well as telecommunications-focused application program interfaces (APIs). Telecom APIs enable software developers to easily integrate omnichannel communications — such as voice, messaging, SMS, and email — into their apps in a modular, scalable manner.

Inessa Galaktionova, MTS First VP for Telecommunications, commented: “Today, the global virtual PBX and CPaaS market is seeing exceptional double-digit growth of around 15-20% a year. While the Russian sector is still developing, we believe it is poised to take off and could outpace the global market over the next few years. Acquiring an established player will enable us to jump start our portfolio, accelerating our ambition to become a market leader in the segment,” she said, adding: “By integrating MTT’s solutions we can better meet the market’s growing needs for reliable, real-time customer communication, which is particularly important in high-growth tech sectors such as ecommerce, telemedicine, eticketing, and ride-hailing and delivery.”

MTT Group CEO Evgeny Vasiliev commented: “We have been on a long journey that saw us evolve from being a ‘heavyweight’ transit operator to becoming Russia’s market leader in Telecom API and Unified Communications. This has proven that we made a smart bet with MTT’s innovation strategy, which is aimed at winning in this dynamically growing segment. We are developing in both of our growth directions and we expect to see significant growth in the near future. The deal with MTS will enable MTT to open a new page in its history. The potential synergies in telecommunications as well as cloud and voice services will unlock additional opportunities to help our companies’ business clients further digitally transform their operations.”

The acquisition earlier received all necessary approvals, including from the Russian Federal Antimonopoly Service (FAS).
CT Bureau