Hytera Communications Completes Acquisition of Sepura

Hytera Communications Corporation Limited (002583.SZ), the leading global provider of innovative professional mobile radio (PMR) communications solutions that improve organizational efficiency and make the world safer, announced that as of 24 May 2017 it has completed its acquisition of the Sepura Group PLC, based in Cambridge, United Kingdom, the leading provider in TETRA products and solutions for organizations worldwide.

"The PMR communications industry is seeing rapid evolution, and Hytera leads in incorporating new technologies and attractive features that deliver more effective solutions for our customers," said Mr. Qingzhou Chen, founder, chairman and president of Shenzhen, Guangdong-based Hytera. "Adding the Sepura Group complements our strengths in technological innovation, especially in TETRA, along with adding sophisticated engineering talent and an experienced operating team, and enhances our channel partnerships around the world."

Sepura is a market leader in 20 countries and has end-customers in more than 100 countries, and has the second-largest market share in public security in Europe. Hytera's acquisition of Sepura adds approximately 700 professionals and staff to Hytera's organization.

"Hytera has been investing strategically in Europe," said Mr. Chen. "In 2011, Hytera acquired what is now Hytera Mobilfunk GmbH in Germany, growing it into a significant PMR provider in Europe and one of our most important research centers. By adding Sepura, Hytera now has two more innovation centers, in the United Kingdom and Spain. With enhanced capabilities, we can better serve local markets and help to address increasing security challenges in Europe," added Mr. Chen.

Established in 1993 in Shenzhen, China, Hytera Communications is the world's fastest-growing PMR solution provider, and the world's #1 DMR Tier III Trunking provider. Its more than 7,000 employees serve organizations in more than 120 countries, including in government, the public security sector, the utilities, transportation, and oil and gas industries, and a range of other businesses.

In 2016, both Hytera and Sepura provided PMR solutions for event management and public safety at the 2016 Olympic Games in Brazil. Next year, Hytera will provide similar PMR communications solutions for security and event management for the 2018 World Cup in Russia.

"Joining with Hytera gives us access to a broader cross-section of the market, gives our dealers the advantage of a wider range of products and solutions, and provides growth opportunities for our engineers and research and development technicians," said David Barrass, the interim Chief Executive Officer of Sepura. "With its growing momentum in the PMR space and some very high-profile opportunities, Hytera is executing a clear strategy as it expands globally. It's a terrific opportunity."

Last year, Hytera reported year-over-year growth of 39%. In 2016, Hytera's overall sales of terminals were up 52%, and its overall sales of infrastructure increased 86%.

The announcement of the Sepura deal's closing comes in the wake of Hytera's highly anticipated debut at Critical Communications World 2017 in Hong Kong of its new LTE-PMR Convergence Solution, which comprises cutting-edge Multi-mode Advanced Radio terminals, narrowband-broadband infrastructure, and management software. Hytera's LTE-PMR Convergence Solution incorporates feature-rich broadband technologies while ensuring that critically important voice services remain reliably accessible using narrowband technologies such as TETRA, DMR, and PDT.

Hytera Chairman Qingzhou Chen will visit Sepura's offices in the U.K. and Spain in June to deepen relationships with key management and to meet personnel. "Hytera has tremendous momentum in the marketplace," he notes. "Last year, we became the second-largest PMR communications provider in the world, and we believe there remain excellent prospects for growth in key markets."