The Norwegian government’s strategy to enhance its space industry capabilities is being realized through the acquisition of Telenor Satellite by Space Norway. Telenor Satellite is renowned for its delivery of top-quality television and data services across Europe, the Middle East, and Africa (EMEA), serving millions of homes and various maritime and land terminals.
The deal, anticipated to be completed by January 2024 pending parliamentary approval, aligns with the government’s objective to establish a significant Norwegian satellite operator. Jan Christian Vestre, the Norwegian Minister of Trade and Industry, has voiced his support for this transaction, recognizing it as a pivotal step in securing strategically important satellites amidst the current geopolitical climate.
Space Norway, a government-owned entity specializing in managing strategic space assets, ranging from small to large satellites and ground infrastructure in Low Earth Orbits (LEO), will receive capital provision from Parliament to fund this acquisition.
Telenor Satellite has demonstrated strong financial performance in the first three quarters of 2023, generating NOK 707 million in revenue, NOK 504 million in EBITDA, and NOK 284 million in EBIT. Under the ownership of Space Norway, the acquisition is expected to create further growth opportunities for Telenor Satellite, leveraging both governmental and commercial customer bases.
The agreement between Telenor Satellite and Space Norway also includes a strategic partnership and potential joint business initiatives as outlined in a letter of intent. These initiatives may involve satellite consulting services and are projected to drive growth through the combination of their respective strengths in serving government and commercial clients.
The acquisition of Telenor Satellite by Space Norway marks an important milestone in strengthening the Norwegian space industry. With parliamentary approval pending, this transaction shows promising potential for growth and expansion in various sectors.