Hytera Communications Completes Acquisition of Sepura

Global Leader in Professional Mobile Radio Solutions Sees Further Opportunity to Grow in TETRA, DMR and LTE

25 May 2017 - 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, today completed its acquisition of the Sepura Group PLC, based in Cambridge, United Kingdom, a widely respected leader in TETRA with the unique ability to offer TETRA, DMR, P25 and LTE system solutions for organizations worldwide.

"The PMR 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."

Hytera's acquisition of Sepura adds approximately 700 professionals and staff to Hytera's organization, along with research facilities and offices in Cambridge, Zaragoza, and Helsinki. Sepura had itself grown rapidly, both organically and through the acquisition of Zaragoza, Spain-based PMR communications solutions provider Teltronic S.A.U. in 2015. Sepura also owns Helsinki, Finland-based applications developer Portalify. The Sepura Group markets PMR communications solutions under the PowerTrunk brand in North America.

"Sepura and its subsidiaries provide Hytera greater market share in the U.K., Europe, and North America, as well as strong channel partnerships through a worldwide dealer network," added Hytera's 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. Hytera's 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."

Added Mr. Chen: "As we add Sepura's technical talent, market reach, and relationships to Hytera's own, we believe the future is full of promise."

Media contact:

Sepura plc.
Peter Connor
t: +44 (0)1223 876000
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