Space Norway, wholly owned by the Norwegian Government, is set to acquire Telenor Satellite for NOK 2.36 billion on an enterprise value basis. The transaction is subject to approval by the Norwegian Parliament and is expected to close in January 2024.
Telenor Satellite has been providing premium broadcasting and data services via satellite for over 20 years. With this acquisition, the company will have an industrial owner in Space Norway who has the necessary expertise and financial resources to unlock its full potential. Telenor Satellite’s Executive Vice President and Head of Telenor Amp, Dan Ouchterlony, expressed pride in the achievements of the company and looks forward to its future development.
The CEO of Space Norway, Dag H. Stølan, highlights the importance of satellite-based capabilities in today’s world. The combination of Space Norway’s partly governmental customers and Telenor Satellite’s commercial customer base will create a strong platform for growth in both sectors. Stølan is excited about the agreement and the opportunities it brings for the long-term development of Telenor Satellite.
Telenor and Space Norway have already signed a letter of intent for a strategic partnership that includes exploring additional satellite capacity and satellite consulting services. The Norwegian Minister of Trade and Industry, Jan Christian Vestre, stated that the government will propose providing Space Norway with the necessary capital to finance the acquisition. This move is expected to strengthen Norway’s space industry and maintain control over satellites crucial for critical societal functions and the country’s strategic interests.
Telenor Satellite operates in the European, Middle East, and North African (EMEA) market, providing broadcasting and data communication services. The company serves millions of homes with TV services and offers data connectivity to thousands of vessels and land terminals. In the first three quarters of 2023, Telenor Satellite reported revenues of NOK 707 million, EBITDA of NOK 504 million, and EBIT of NOK 284 million.
Space Norway manages and develops strategic space capabilities on behalf of the Norwegian Ministry of Trade, Industry, and Fisheries. Its activities span from small to large satellites and ground infrastructure, contributing to Norway’s presence as a space nation.