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.
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Combining industrial edge with experienced growth 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.
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