Telenor has signed a deal with Verdane to create a co-ownership arrangement for Telenor Connexion. The deal places a valuation of SEK 7.5 billion on the company. The collaboration aims to unlock the full potential of Telenor Connexion’s strong market position and give it access to long-term growth funding through an efficient ownership framework.
Over the last 25 years, Telenor Connexion has developed a leading global presence in managed IoT services and connectivity solutions for major international clients. The market is forecast to expand at double-digit rates through to 2030. Currently, the company ranks among the top ten providers worldwide outside of China, managing 31 million active IoT SIM cards and serving customers in more than 200 countries.
“We have ambitious goals in the managed IoT sector, and with Verdane as a partner, we gain the extra momentum to achieve them in a more capital-efficient way. At the same time, this deal clearly showcases Telenor’s track record of generating value,” says Benedicte Schilbred Fasmer, president and CEO of Telenor.
Telenor Connexion provides IoT solutions for a wide range of applications, from vehicles and water pumps to robotic lawn mowers. In January 2026, Telenor brought its Nordic IoT operations together under a single brand framework, with Telenor Connexion acting as the dedicated IoT division operating under the broader portfolio brand, Telenor IoT.
“With this new structure in place, we’re primed for the next stage of growth. Telenor will remain a long-term, strategic owner and continue to leverage the Group’s full industrial capabilities behind Telenor Connexion. Together with Verdane, we plan to expand the business more quickly and carefully,” Fasmer adds.
Merging Industrial Strength with Expert Growth Capital
The global IoT market is seeing robust expansion. This partnership allows Telenor to combine its industrial platform, worldwide reach, and solid customer relationships with Verdane’s financial strength, deal-making expertise, and hands-on ownership approach. This setup supports long-term growth ambitions and enables Telenor to grow in a disciplined fashion. The goal is to enhance Telenor Connexion’s global offerings and boost growth through both organic expansion and strategic acquisitions.
Pekka Lundmark, former president and CEO of Nokia, has agreed to become Independent Chair of Telenor Connexion once the deal closes. Mats Lundquist will stay on as chief executive officer of Telenor Connexion, ensuring leadership continuity and steady execution of the company’s growth plan.
Bjarne Kveim Lie, founder and managing partner at Verdane, commented: “We’re pleased to have formed a partnership built on mutual trust with Telenor and are excited to work together in the years ahead. We believe Telenor Connexion is ideally positioned in a well-established structural growth market that stands to gain from the rising use of AI through connected devices across data-heavy industries.”
Morten Weicher, a partner at Verdane, added: “We’re eager to help the Telenor Connexion team carry out their bold plan to become a global leader, using Verdane’s extensive track record in scaling industrial technology firms and more than 15 years of IoT investment experience.”
Financial Details and Deal Structure
In 2025, Telenor Connexion posted revenues of around SEK 1.3 billion and recorded an EBITDA of roughly SEK 415 million on a pro-forma basis after consolidating Managed IoT Connectivity across the Telenor Group. As payment following the deal, Telenor will receive about SEK 3.8 billion in cash, plus a seller credit of approximately SEK 0.8 billion, and book a gain of around SEK 7.2 billion. Both parties have committed to inject an additional SEK 2 billion into the company’s value-building growth journey, which for Telenor will account for roughly half of the upfront proceeds from the transaction.
Telenor Group’s divestment sets Telenor Connexion’s enterprise value at 18x 2025 EBITDA. As part of the deal, the new entity will take on about SEK 2.2 billion in new bank debt, implying an expected post-deal equity value of around SEK 5.3 billion for Telenor Connexion. The agreement also includes a potential earn-out if certain business milestones are met, which could raise the company’s enterprise value by SEK 0.3 billion.
After the transaction, Telenor Connexion will be reported as an associated company of Telenor Group. The parties will form a jointly owned company split 50/50. The board will include two representatives from each owner, plus an independent chair. The deal is expected to close in 2026, pending standard regulatory approvals.
As part of the transaction, Verdane will take over Telenor’s stakes in Telenor Amp’s portfolio companies BLDNG.ai and Whereby.
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