With this acquisition, Space Norway becomes the leading environment for satellite operations in Norway as well as a considerable European satellite operator. The transaction provides Norway with an enhanced national ability within satellite services and paves the way for growth and new satellite projects. A strong Norwegian satellite operator signifies opportunities for the entire national space industry.
Satellites are becoming increasingly important. Numerous essential and critical functions depend on satellites, such as search and rescue, communication, and monitoring of maritime traffic in Norway's ocean waters.
“I see great business opportunities ahead. Combined pro forma turnover for these companies in 2022 was approximately NOK 1.8bn, with an EBITDA of approx. NOK 875 million and an order backlog of approx. NOK 13bn. Adding Telenor Satellite, the new company becomes a robust knowledge hub and a significant satellite environment. The process of acquiring a new satellite in the Thor series will start at once,” says CEO Dag Stølan at Space Norway.
“We are looking forward to becoming part of a strong company where satellite operation is core business, and together we will become the premier space environment in the country. Space Norway has some of the most innovative projects in this industry and we are excited to bring our knowledge and competence to the table,” says CEO Morten Tengs at Telenor Satellite.
“The Government will propose to the Parliament to issue equity to finance the acquisition of Telenor Satellite. The transaction will contribute to the establishment of a major Norwegian satellite operator which, together with a growing Norwegian space industry, can strengthen Norway as a space nation. At the same time, the acquisition ensures that Norway, in a time of increasing geopolitical unrest, maintains control over satellites crucial for critical societal functions and strategically important for the country,” says the Norwegian Minister of Trade and Industry, Jan Christian Vestre.
Telenor divests its satellite operations with this transaction, but will still need satellite capabilities. It has signed a letter of intent with Space Norway outlining continued cooperation on new satellite services.
“Telenor will no longer operate satellites and we will focus on our core business. We are confident that Space Norway is the best possible owner to further develop Telenor Satellite. The letter of Intent ensures continuity and quality in our customer services,” says EVP Dan Ouchterlony at Telenor.
The new organization will consist of approximately 170 people stationed in the Oslo area and in Tromsø. The transaction is valued at NOK 2,36 bn and is dependent on an equity issue approval by the Norwegian Parliament.