Telenor ASA — M&A Activity 2014

Mar 26, 2014

Telenor Broadcast divests Conax to Kudelski Group for NOK 1.5 billion

Telenor Broadcast divests Conax to Kudelski Group for NOK 1.5 billion

Telenor Broadcast has on 25 March 2014 entered into a

definitive agreement to sell its subsidiary Conax AS

to Swiss-based Kudelski Group for NOK 1,509 million on

a cash and debt free basis.

Conax is a leading global provider of solutions for

securing digital video content distribution on all

networks and devices with a market share of

approximately 7%. Conax serves approximately 380

customers worldwide representing 140 million pay-TV

consumers in over 85 countries. Conax has a broad

product portfolio encompassing both traditional

broadcast products and complete solutions for multi-

screen TV distribution.

The sale of Conax marks an important step for Telenor

Broadcast in pursuing its stated strategy of focusing

on its core activities within the Telenor Group.

Commenting on the transaction, Patrik Hofbauer, CEO of

Telenor Broadcast, said: "The Conax operation has been

very successful with a strong track record of

international growth and high profitability. However,

as competition increases and new technologies emerge,

achieving global scale and enhancing market share will

be key determinants of future success. To support

Conax and jointly pursue future growth opportunities

we have evaluated that the best way forward for Conax

is with a new owner. Kudelski Group is a leading

security player within the industry".

In 2013, Conax had revenues of NOK 627 million, EBITDA

of NOK 243 million and CAPEX of NOK 44 million. The

transaction is expected to be finalised in April 2014,

and Telenor will report a gain of approximately NOK

1.3 billion.