(Fornebu, Norway, 26 May 2026) Telenor has entered into an agreement with
Verdane to establish a joint ownership structure over Telenor Connexion. The
transaction values the company at SEK 7.5 billion. The partnership is intended
to realise value from Telenor Connexion's strong market position while providing
the company with access to long-term growth capital through an efficient
ownership structure.
Over the past 25 years, Telenor Connexion has built a strong global position in
managed IoT services and connectivity solutions for large, global customers. The
market is expected to grow at double digit rates towards 2030. Today, the
company is a top ten player globally outside China, with 31 million IoT SIM
cards in operation and deliveries to more than 200 countries.
"We have bold ambitions in managed IoT, and with Verdane as a partner we gain
additional power to realise them in a much more capital efficient manner. At the
same time, this transaction clearly demonstrates Telenor's ability to create
value," says Benedicte Schilbred Fasmer, President & CEO of Telenor.
Telenor Connexion delivers IoT solutions for everything from cars and water
pumps to robotic lawn mowers. In January 2026, Telenor consolidated its Nordic
IoT operations under one brand structure, with Telenor Connexion as the
specialised IoT unit operating under Telenor IoT as the portfolio brand.
"With this structure in place, we are well positioned for the next phase.
Telenor will remain a long-term, strategic owner, and we will continue to put
the full industrial strength of the Group behind Telenor Connexion. Together
with Verdane, we will scale the business more rapidly in a diligent way," says
Fasmer.
Combining industrial edge with efficient capital
The global IoT market is experiencing strong growth. Through this partnership,
Telenor combines its industrial platform, global reach and strong customer
relationships with Verdane's financial resources, transaction experience and
active ownership model. This structure supports long-term growth ambitions and
allows Telenor to grow in a disciplined manner. The ambition is to strengthen
Telenor Connexion's global offering and accelerate growth through both organic
expansion and value-creating acquisitions.
Pekka Lundmark, the former President and CEO of Nokia, has agreed to join
Telenor Connexion as Independent Chair following closing of the transaction.
Mats Lundquist will continue as Chief Executive Officer of Telenor Connexion,
ensuring continuity in leadership and execution of the company's growth
strategy.
Bjarne Kveim Lie, Founder and Managing Partner at Verdane, said: "We are
grateful to have built a partnership based on mutual trust with Telenor and look
forward to working closely together in the years to come. We believe Telenor
Connexion is perfectly positioned in a well-established structural growth market
that will benefit from the increasing adoption of AI through exposure to
connected devices in data-intensive industries".
Morten Weicher, Partner at Verdane, said: "We look forward to supporting the
Telenor Connexion team in realising their ambitious strategy of becoming a
global leader, drawing on Verdane's significant experience in scaling industrial
technology companies and more than 15 years of experience as an investor in the
IoT space."
Financial highlights and transaction structure
In 2025, Telenor Connexion generated revenues of approximately SEK 1.3 billion
and delivered an EBITDA of around SEK 415 million on a pro-forma basis after the
consolidation of Managed IoT Connectivity across Telenor Group. As consideration
following the transaction, Telenor will receive approximately SEK 3.8 billion in
cash, in addition to a seller credit of approximately SEK 0.8 billion, and
recognise a gain of approximately SEK 7.2 billion. Each party commits to invest
an additional SEK 2 billion in the company's value accretive growth journey,
which for Telenor will be approximately half of the proceeds received upfront in
the transaction.
Telenor Group's divestment values Telenor Connexion's enterprise value at 18x
EBITDA for 2025. As part of the transaction, the new structure will incur
approximately SEK 2.2 billion in new bank debt, implying an expected post
transaction equity value of approximately SEK 5.3 billion for Telenor Connexion.
The agreement also includes a potential earn-out if the company meets certain
commercial targets, increasing the company's enterprise value by SEK 0.3
billion.
Following the transaction, Telenor Connexion will be reported as an associated
company of Telenor Group. The parties will establish a jointly owned company
with 50/50 percent ownership. The board will be comprised of two representatives
from each owner, in addition to an independent chair. The parties expect to
complete the transaction during 2026, subject to the necessary regulatory
approvals.
As part of the transaction, Verdane will acquire Telenor's ownership stakes in
Telenor Amp's portfolio companies BLDNG.ai and Whereby.
About Telenor
Telenor Group is a leading telecommunications and technology company in the
Nordics and Asia, serving over 200 million customers and generating annual
revenues of around NOK 80 billion (2024). Telenor holds strong positions in its
markets and is committed to responsible business conduct.
Driven by Telenor's purpose, "With you, for a safer and smarter tomorrow", we
aim to create impact beyond connectivity by enabling societies to thrive in a
digital future. Our cultural foundation is built on Trust, Curiosity, and
Passion, guiding how we collaborate, innovate and deliver value for customers
and communities.
Connectivity has been Telenor's domain for more than 165 years, and today we
combine that heritage with forward-looking solutions for security,
sustainability and inclusion. Telenor is listed on the Oslo Stock Exchange under
the ticker TEL. For more information, visit https://www.telenor.com.
About Verdane
Verdane is a specialist growth buyout investment firm that partners with
tech-enabled and sustainable businesses that help to digitalise and decarbonise
the European economy. The flexible mandates of Verdane funds allow it to invest
as a majority or minority control investor, replacement or growth capital, in
single companies or in portfolios of companies.
Verdane has raised EUR 10 billion in capital and its funds have made more than
200 investments in fast-growing businesses since 2003. Verdane's team of over
180 investment professionals and operating experts is based out of Berlin,
Copenhagen, London, Helsinki, Munich, Oslo and Stockholm and combines deep
sector expertise with long-standing local networks and presence in core European
markets.
Verdane is also a certified B Corporation, the most ambitious sustainability
accreditation globally. The firm only backs businesses that pass its 2040 test,
which indicates whether the company can thrive in a more sustainable future
economy.
Verdane is partly owned by the Verdane Foundation, which is focused on two
areas: climate change and more equitable and inclusive local communities.
More info: www.verdane.com
Follow Verdane on LinkedIn
For further information, please contact:
David Fidjeland, Communications Director, mobile +47 93 46 72 24
Frank Maaø, SVP Capital Markets and Investor Relations, mobile +47 91 67 40 45
This information is subject to the disclosure requirements pursuant to section
5-12 of the Securities Trading Act.
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Frank Maaø\, SVP Capital Markets and Investor Relations\, mobile +47 91 67 40 45\
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This information is subject to the disclosure requirements pursuant to section\
5-12 of the Securities Trading Act.\