Golden Telecom will lease the company’s services for use in Russia, Ukraine, and Kazakhstan.
Online customized advertising company Netex (Net Express) Ltd. (TASE:NTX) has signed a long-term contract with Golden Telecom Inc. (Nasdaq: GLDN) - EDN Sovintel, which will receive a franchise to operate the company’s services in Russia, Ukraine, and Kazakhstan. Netex will receive a one-time payment, to be paid over the next three quarters, plus quarterly royalties and fixed payments for use of its services. The company estimates its revenue from the contract at NIS 3.2 million over the next 12 months.
Netex rose 11% in morning trading following the announcement.
Netex CEO Aviv Refua said, “We see the entry into the Russian and East European market, which have the fastest rate of internet growth in the world, as giving substantial added value to our shareholders, and we’ll pursue our strategy of entering new markets around the world, duplicating our model and constantly improving it.”
Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007