Norwegian state owned Nettbuss invests in T solutions
Norway’s leading bus operator, Nettbuss, will buy 15% of the Estonian technology company T solutions, specialising in developing and operating public transport ticketing systems. The companies have also signed a substantial agreement for the implementation of T solutions’ technology on Nettbuss commercial express lines in Norway and Sweden.
According to Andres Osula, Chairman of the Supervisory Board of T solutions, the Norwegians will become strategic investors in the company. “The technology company, which initially emerged from the IT department of the Tallinn Bus Station, has outgrown the status of start-up company and this transaction no longer qualifies as typical start-up funding.” He adds that even though T solutions is currently able to serve its customers and develop the product without extra funding, the investment by Nettbuss and their profound knowledge of the sector gives even greater leverage in becoming a key Global player in the field.
According to Andres Birnbaum, CEO of the T solutions, Nettbuss was initially contacted to establish a customer relationship. However, during the course of negotiations it appeared that the interest of the Norwegians toward the company was more than just using innovative ticketing systems. “The people at Nettbuss quickly understood the real ambition behind the software of T solutions and its potential in road transport industry. From aviation we are familiar with the airline distribution system Amadeus, which was jointly established by major airlines in 1980s. In road transport, however, no analogous solutions have yet to be created. We believe the software created by T solutions has the capability to become such a platform,” Birnbaum explained.
“Our customers are increasingly becoming digital, and taking our digital offering to the next level is fundamental to maintain our position as the No. 1 express coach network in Scandinavia. We are confident that this partnership with T solutions will give us access to most innovative technology and best knowhow in the industry”, says Mr Ståle Nistov, CEO of Nettbuss Travel in Norway.
According to Andres Osula, including the Norwegian state owned company amongst shareholders provides unprecedented access to international contacts and promotes entry into new markets. “While the big news from last spring was the breakthrough of T solutions into France through client contract with Transdev, current deal with Nettbuss will advance the Estonian-made ticketing solutions to the Scandinavian market,” he explained.
T solutions utilizes similar advanced revenue generating capabilities, which have been used in the aviation industry for the last 20 years. This means that each seat can have its own price based on actual demand, allowing operators to efficiently utilize resources and maximize yield across all distribution channels. All sales are processed in real time against the same inventory, even on board the vehicles.
A pioneer of public transport ticket systems in Estonia, T solutions platform processes around eight million transactions annually and its services are used by over 40 coach companies across Europe. The company’s software platform is suitable for medium-sized and large providers of passenger transport operators who require complex multi-leg logistics management, dynamic pricing and marketing, and flexible responsiveness to market situation and demand. The head-office of the company with 45 employees is in Tartu.
Nettbuss is one of the largest bus operator in the Nordic region with a turnover of EUR 670 million, 3300 buses and 7400 employees, and more than 113 million passengers in Norway and Sweden using its services each year. Nettbuss is Scandinavia’s largest operator of long distance commercial coaches through its subsidiary Nettbuss Travel, which operates a network covering Norway, Sweden and Denmark.