NENT Group and Telenor Group are to merge their consumer operations, combining Viasat’s satellite pay-TV business with Canal Digital’s operations.
The two businesses will each take 50% in a new joint venture company that will adopt Telenor’s 1 degree West satellite neighbourhood.
The combined company will have combined sales of SEK 7.6 billion and 1,257k subscribers.
The combination is subject to EU regulatory approval and expected to be completed during the first half of 2020.
The companies believe that consolidation within the Nordic satellite-TV segment has been clear for some time.
Anders Jensen, NENT Group President and CEO: “We are creating a large-scale TV operator that will create sustainable value for customers and owners, and be able to compete with large scale regional and local competitors. The new joint venture will be a major distribution partner for both our Viasat channels and Viaplay.”
Jørgen C. Arentz Rostrup, Telenor Group CFO, added: “There is a compelling business rationale behind combining the DTH operations of Canal Digital and Viasat Consumer, with large synergies to be captured within areas including transponder capacity, IT and operating expenditure.”
The company will be headquartered in Stockholm and Oslo. The Board of Directors will have an equal representation from Telenor and NENT Group, with a rotating chairmanship. The CEO will be Bjørn Ivar Moen (currently CEO of Canal Digital and Telenor Broadcast), and the CFO and Head of Operations will be Jonas Gustafsson (currently CEO of Viasat Consumer). Other key management positions will be jointly appointed and announced prior to the completion of the transaction.