Telenor said that the deal had been initially announced in November 2023
State-owned Space Norway announced the completion of the purchase of Telenor Group’s satellite subsidiary for a total of NOK2.4 billion ($234 million).
In a release, the company said the transaction was finalized after the country’s parliament approved the allocation of cash for the acquisition.
The deal, initially announced in November last year, is the latest in a number of divestments by telecom group Telenor as it aims to reduce the size of its structure and focus on its core business.
“With this acquisition Space Norway group is the largest and leading satellite environment in Norway. We are also a significant satellite operator in Europe,” said Space Norway’s CEO Dag Stølan.
Telenor Satellites CEO, Morten Tengs, highlighted that the acquisition is a positive development for the company. “We are pleased to be part of Space Norway. We are excited to bring our industry experience and expertise to the table”, said Tengs.
“Together, we will continue to develop the Norwegian space sector as well as serve our clients throughout the Nordics and EMEA”, he added.
The Norwegian government provided capital to Space Norway to finance the purchase of Telenor Satellite.
“We have had good cooperation with the Ministry of Trade, Industry and Fisheries in the acquisition process. Now that we have ownership of Telenor Satellite, it provides new and significant opportunities for development and growth for Space Norway,” Stølan said.
The new organization will consist of around 170 employees located in the Oslo area and Tromsø.
Space Norway manages and develops non-terrestrial infrastructure deemed important for Norway including in the national security realm. Meanwhile, Telenor Satellite’s business provides broadcasting services, alongside data transmission for maritime and other sectors.
In August 2023, Cisco had announced plans to acquire Working Group Two (WG2) from Telenor Group — which currently holds a 44.6% share in the company — for $150 million. WG2 offers mobile operators a cloud-based core network, before it was spun out in 2017. Now, Cisco is looking to use the acquisition to bolster its recently announced mobility services platform and help operators launch new services across the IoT and industry verticals.
Cisco said the transaction is expected to be finalized in the first quarter of this year.
