Telenor Group has signed an agreement with Verdane to establish a joint ownership structure for Telenor Connexion in a transaction valuing the IoT business at SEK 7.5 billion.
The 50-50 partnership is aimed at accelerating growth in managed IoT services and connectivity solutions while improving capital efficiency and unlocking long-term value creation opportunities in the rapidly growing global Internet of Things market.
Telenor Connexion has spent the past 25 years building a strong position in managed IoT connectivity services for enterprise customers worldwide. The company currently operates 31 million IoT SIM cards and delivers services across more than 200 countries, making it one of the top ten global IoT players outside China.
Benedicte Schilbred Fasmer said the partnership with Verdane will strengthen Telenor’s ambitions in managed IoT and support faster, more capital-efficient expansion.
The IoT market is expected to grow at double-digit rates through 2030, driven by increasing adoption of connected devices, artificial intelligence, industrial automation, and data-driven operations.
Telenor Connexion provides IoT solutions across industries including automotive, industrial equipment, utilities, and smart consumer products such as robotic lawn mowers and water pumps. In January 2026, Telenor consolidated its Nordic IoT operations under the Telenor IoT portfolio brand, positioning Telenor Connexion as the group’s specialized IoT business unit.
The transaction combines Telenor’s telecom infrastructure, industrial expertise, and enterprise customer base with Verdane’s growth capital, acquisition expertise, and industrial technology investment experience. The companies plan to accelerate both organic expansion and strategic acquisitions to strengthen Telenor Connexion’s global market position.
Former Nokia CEO Pekka Lundmark will join Telenor Connexion as independent chair after the transaction closes. Mats Lundquist will continue leading the business.
Verdane executives said the IoT market will benefit significantly from increasing AI adoption and connected devices across data-intensive industries, creating strong long-term growth opportunities for Telenor Connexion.
Financially, Telenor Connexion generated approximately SEK 1.3 billion in revenue during 2025 and delivered EBITDA of around SEK 415 million on a pro-forma basis following consolidation of managed IoT connectivity operations within Telenor Group.
Under the transaction terms, Telenor will receive approximately SEK 3.8 billion in cash along with a seller credit of around SEK 0.8 billion. The telecom group expects to recognize a gain of approximately SEK 7.2 billion from the transaction.
Both Telenor and Verdane will additionally commit SEK 2 billion each to support future growth investments and acquisitions. Telenor plans to reinvest approximately half of the upfront transaction proceeds into the business expansion strategy.
The deal values Telenor Connexion at approximately 18 times projected 2025 EBITDA. The ownership structure will include around SEK 2.2 billion in new bank debt, resulting in an expected post-transaction equity value of approximately SEK 5.3 billion.
The agreement includes a potential earn-out mechanism tied to commercial performance targets that could increase enterprise value by an additional SEK 0.3 billion.
Following completion, Telenor Connexion will operate as an associated company within Telenor Group under a 50-50 ownership structure between Telenor and Verdane. The board will consist of two representatives from each shareholder and an independent chair.
The companies expect the transaction to close during 2026, subject to regulatory approvals.
As part of the agreement, Verdane will also acquire Telenor’s ownership stakes in BLDNG.ai and Whereby from the Telenor Amp portfolio.
