•New structure manages 31 million IoT SIMs across 200 countries with SEK1.3bn annual revenue
•Telenor and Verdane each commit SEK2bn in additional capital for growth and acquisitions
The fact
Telenor has agreed with Verdane to establish a 50/50 joint ownership structure for its managed IoT subsidiary Telenor Connexion, valuing the business at SEK7.5bn, or 18x EBITDA. In 2025 the company generated approximately SEK1.3bn in revenue and SEK415m EBITDA following Nordic IoT consolidation. It operates around 31 million IoT SIM cards and serves customers in more than 200 countries. Both parties will invest an additional SEK2bn each to support future growth. Former Nokia CEO Pekka Lundmark will become independent chair following completion in 2026, subject to regulatory approval.
The Assessment
The transaction shifts Telenor Connexion from an internally funded telecom IoT unit into a separately capitalised growth platform. At 18x EBITDA, the valuation treats managed IoT as a recurring infrastructure-style business rather than a commodity connectivity service, reflecting the premium that scale and long-term device contracts command in this market. Telenor retains strategic control while offloading SEK3.8bn in upfront cash — roughly half of which it reinvests — signalling that operators are using external capital to fund IoT expansion without diluting their network budgets. The 31 million SIM footprint positions the entity to pursue consolidation in a fragmented global IoT connectivity market.
What to Watch
Track whether the SEK4bn combined capital is deployed for cross-border acquisitions in IoT connectivity or device management. The broader signal is whether incumbent operators follow Telenor in spinning off IoT units as separately capitalised entities backed by private equity.
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