Telenor has agreed to form a jointly-owned company with Verdane for Telenor Connexion, its managed IoT services business. The transaction values Telenor Connexion at SEK 7.5 billion. The new company will be owned equally, with Telenor and Verdane each owing half of the entity.

Telenor said the partnership is intended to give Telenor Connexion access to long-term growth capital through a more efficient ownership structure. Verdane will provide investment backing and ownership support.

IoT unit spans 200 countries

Telenor Connexion provides managed IoT connectivity services, its services used in products like vehicles, water pumps, and robotic lawn mowers. It has 31 million IoT SIM cards in operation in more than 200 countries and is described by Telenor as a top ten global player outside China.

Telenor has been in the managed IoT space for 25 years. In January 2026, the group consolidated its Nordic IoT operations under one brand structure, with Telenor Connexion operating as the specialised IoT unit under the Telenor IoT portfolio brand.

Telenor has said it aims to become a top-five global IoT provider outside China, seeing the Verdane partnership as part of its journey. Under the new ownership structure, Telenor Connexion will operate as a jointly owned IoT company, with Telenor in overall control.

Telenor President and CEO Benedicte Schilbred Fasmer said the partnership with Verdane would give the group more capacity to pursue its managed IoT plans in a capital-efficient way. She said Telenor would remain a long-term owner and continue to support the company through the group’s industrial resources.

The companies said Telenor Connexion will pursue organic expansion and acquisitions. They did not specify future acquisition targets, new products, or additional markets.

Pekka Lundmark, former president and CEO of Nokia, has agreed to become independent chair of Telenor Connexion after the transaction closes. Mats Lundquist will remain chief executive officer.

Financial terms

Telenor Connexion generated about SEK 1.3 billion in revenue in 2025. Its pro-forma EBITDA was around SEK 415 million after the consolidation of Managed IoT Connectivity in Telenor Group. It will receive around SEK 3.8 billion in cash from the transaction, and a seller credit of about SEK 0.8 billion, gaining approximately SEK 7.2 billion.

Both Telenor and Verdane have committed to invest an additional SEK 2 billion each in the company. Telenor said its commitment represents about half of the upfront proceeds it will receive from the transaction. The divestment values Telenor Connexion at 18 times its 2025 EBITDA. The new company will take on about SEK 2.2 billion in bank debt. Its expected post-transaction equity value is around SEK 5.3 billion.

The agreement includes a potential earn-out if Telenor Connexion reaches certain commercial targets. That provision could increase the enterprise value by SEK 0.3 billion.

After completion, Telenor Connexion will be reported as an associated company of Telenor Group, the board including two representatives from each owner and the independent chair. The transaction will close this, subject to regulatory approvals, with Verdane acquiring Telenor’s stakes in BLDNG.ai and Whereby, part of Telenor Amp’s portfolio.

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