Telenor and Verdane Launch $809M IoT Joint Venture

Key Takeaways

Telenor and Verdane have formed a joint venture for Telenor Connexion, valued at SEK 7.5 billion.
The new ownership structure aims to facilitate long-term growth in the managed IoT market.
Pekka Lundmark has been appointed as the independent chair of Telenor Connexion post-transaction.

Partnership Overview

Telenor has partnered with Verdane to create a jointly-owned company for Telenor Connexion, its managed IoT services unit, with a total evaluation of SEK 7.5 billion. Each company will own an equal share. This collaboration aims to provide Telenor Connexion with stable growth capital and improve operational efficiency.

Telenor Connexion’s Global Reach

Operating in over 200 countries, Telenor Connexion specializes in managed IoT connectivity services used in various applications, including vehicles and smart infrastructure. The company has 31 million IoT SIM cards in operation, establishing itself as a leading player in the global market, particularly outside of China.

Telenor’s journey in the managed IoT space spans 25 years. In January 2026, Telenor consolidated its Nordic IoT operations under a unified brand structure, positioning Telenor Connexion as a specialized unit within the larger Telenor IoT portfolio.

Strategic Objectives

Telenor aims to rank among the top five global IoT providers outside China, viewing the partnership with Verdane as pivotal for achieving long-term growth. Following the transaction, Telenor Connexion will focus on both organic growth and acquisition opportunities, although specific future targets have not been disclosed.

Telenor President and CEO Benedicte Schilbred Fasmer highlighted that this partnership will enhance the company’s capability to pursue managed IoT strategies in a capital-efficient manner while Telenor retains its commitment as a long-term stakeholder.

Financial Insights

In 2025, Telenor Connexion is projected to generate around SEK 1.3 billion in revenue with a pro-forma EBITDA of approximately SEK 415 million. Telenor will receive SEK 3.8 billion in cash and a seller credit of SEK 0.8 billion from the transaction, equating to a total of about SEK 7.2 billion. Additional investments of SEK 2 billion from both Telenor and Verdane are committed, with Telenor’s share reflecting a significant portion of the upfront proceeds.

The divestment values Telenor Connexion at 18 times its EBITDA for 2025, and the new company will incur around SEK 2.2 billion in bank debt. The expected equity value following the transaction stands at approximately SEK 5.3 billion. An earn-out clause is included, potentially increasing the enterprise value by SEK 0.3 billion based on specific commercial targets achieved by Telenor Connexion.

Governance and Future Directions

Upon completion, Telenor Connexion will be classified as an associated company within Telenor Group, featuring a board comprising representatives from both Telenor and Verdane, alongside an independent chair. The transaction is set to close pending regulatory approvals, during which Verdane will also acquire Telenor’s stakes in BLDNG.ai and Whereby, part of Telenor’s broader operations.

This collaboration marks a significant step for Telenor in enhancing its IoT services while addressing the growing global demand for managed connectivity solutions.

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