Biznet Receives Investment From FTA Bilisim
BTS & Partners has advised Biznet Bilisim Sistemleri ve Danismanlik Sanayi Ticaret and its former shareholder, FVD AS, on FTA Bilisim Hizmetleri’s investments in the company and SR Bilisim Yonetim Hizmetleri Ticaret Securrent.
Biznet is a cybersecurity company in Turkey that provides consulting, penetration testing and auditing services, as well as integration and support services of cybersecurity products to around 400 clients in various industries.
Securrent is an Istanbul-based cybersecurity company.
The BTS team was led by Partner Selin Beceni and included Senior Managing Counsel Zeynep Unlu. We spoke to the BTS team below.
Please tell me about your involvement in the deal.
BTS & Partners have been advising the sellers (i.e. shareholders of Biznet: Mr Turgut Gürsoy and FVD İleri Teknoloji A.Ş.), who have been actively investing in Turkey’s technology sector, for 15 years.
In this deal, we [BTS & Partners] represented the sellers from the very beginning of the initial negotiations with the other parties – including the investing private equity Taxim Capital and the other being the shareholder of Securrent -, from the consummation of the conditions precedent, the major amongst others being the merger clearance, all the way to the completion of the transaction.
Why is this a good deal for all involved?
There were three parties involved with different stakes and two targeted companies (i.e. Biznet and Securrent) active in the same sector that is quite high in demand. Although the businesses of the targeted two companies were competing, they had different strengths which are often complementary to each other when managed intelligently. Therefore, aligning these companies with improved financing ensures a sustainable and fair competitive advantage, whilst offering opportunities for creating added value in the cybersecurity sector, as a whole.
What challenges arose? How did you navigate them?
As there were three different parties involved, it was not easy to maintain a balance among those, especially in terms of the rights and privileges sought. Knowing and understanding the business and the trends in the sector helped us to navigate the issues that arose, while managing and negotiating the demands of each of the parties.
Cybersecurity is one of the most favoured sectors in Turkey’s business environment, thus it is highly worth investing in
How does this investment reflect the current investment scene in Turkey?
This was a significant investment in the market, especially when the latest statistics about the investment environment was scrutinized. Turkey’s technology sector and their SMEs are not being encountered with lots of investments, especially those that have grown and expanded locally. Therefore, this deal carries a high value in this sense.
Moreover, can you advise whether the cybersecurity sector is worth investing in, in the current climate?
As already mentioned above, cybersecurity is one of the most favoured sectors in Turkey’s business environment, thus it is highly worth investing in. It is prioritized with the government strategies that attach the greatest importance to digitalisation, security and local production of technologies. Therefore, the market players, regardless of the sector they are engaged in, started to invest in and allocate recognisable budgets to cybersecurity solutions.
What challenges may arise for those wanting to invest in the aforementioned sector and how would you advise?
The sector, in Turkey, has its own dynamics and is not yet as developed as it is in Europe or the US. Therefore, knowing and understanding the trends in the sector as well as governmental policies with an impact over the creation, utilisation, adaptation, outsourcing and commercialisation of the cybersecurity solutions, carry high importance in terms of assessing the value and the future of each individual business investing.