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TORONTO, ONTARIO--(Marketwired - Mar 16, 2016) - Tellza Communications Inc. (TSX:TEL) announced today that it has exercised its right to acquire 9.99% of Merkez Factoring A.S. ("Merkez"), of Istanbul, Turkey, for a purchase price of $0.7 Million USD. Tellza has the further right to acquire up to 49% of Merkez prior to December 31, 2016, subject to the approval of the Banking Regulatory Supervisory Agency of Turkey ("BRSA").
Tellza has successfully grown its annual revenues from $120 Million USD in 2011 to $300 Million USD in 2015, remaining profitable throughout this growth period in the very competitive telecommunications business. In 2015, we grew revenue by more than $50 Million USD. We attribute our success over the last few years to our investments in systems and automation, together with tight cost control measures.
We have recently begun to broaden our focus and examine opportunities in related markets outside the telecom industry in an effort to further enhance shareholder value as we move forward. Currently, our primary focus is on a portfolio of companies in the support service market for financial products.
Our first investment, Merkez (http://www.merkezfaktoring.com.tr/en/index.php), is in the B2B factoring business in Turkey. Since 1997, Merkez has placed purchase order financing and factored invoices for various companies, earning spreads of up to 15%. In 2015, Mr. Bahri Ugras, a seasoned banking and business professional invested in and became Chairman and CEO of Merkez. Throughout 2015, Mr. Bahri transformed the business and in November 2015 he completed the first stage of Merkez's transformation with its acquisition of Erisim, a competitor of Merkez. As a result of this acquisition, Merkez has total assets of Turkish Lira (TL) 76 Million ($26.6 Million USD), paid in capital of TL 32 Million ($11.2 Million USD) and a combined 2015 turnover of TL19 Million ($6.7 Million USD). We expect that Merkez will continue to acquire more businesses in 2016 as Merkez seeks to expand it service offering.
"We are excited about our decision to expand beyond telecom. In 2015, we commenced licensing our telecom platform with third parties and now in 2016 we have made a first entry into support service sector for financial products", said Gary Clifford.
The Tellza Group is focused on Telecommunications, Technology and Investments. Tellza is a public company listed on the Toronto Stock Exchange (TEL).
Caution Regarding Forward Looking Information:
This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Tellza's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. See www.sedar.com which contains all securities files.
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