Swiss conditional access firm Kudelski has acquired Norwegian telco Telenor’s TV security unit Conax for around CHF 200m (US$226m).
Kudelski expects to close the deal in ten days.
Commenting on the transaction, Kudelski chairman and CEO André…
Swiss conditional access firm Kudelski has acquired Norwegian telco Telenor’s TV security unit Conax for around CHF 200m (US$226m).
Kudelski expects to close the deal in ten days.
Commenting on the transaction, Kudelski chairman and CEO André Kudelski said: “We are very pleased to welcome the Conax team to the Kudelski Group. Their geographic footprint and solution portfolio are complementary to Nagra. With this acquisition, we further expand our customer portfolio in Asia, Latin America, Eastern Europe and Scandinavia.”
The transaction reflects the Swiss group’s growth strategy since it undertook a far-reaching restructuring plan in 2011. Kudelski has sought to substantially cut costs in order to free up resources to invest in new opportunities in converging digital TV and internet technologies for its Nagra portfolio.
Formed in 1994, Conax develops encryption products for pay-TV operators and has a market share of around 7% with around 380 customers, representing 140 million pay-tv consumers in more than 85 countries. Kudelski’s share of the market is around 40-45%.
Conax generated NKr627m (US$104m) of the roughly NKr6.74bn (US$1.12bn) in total sales that the Telenor Broadcast business group posted for 2013.
That compares with around NKr4.54bn (US$753m) for its DTH group Canal Digital, NKr1.6bn (US$265m) for DTT firm Norkring, and NKr971m (US$161m) for satellite operator Telenor Satellite Broadcasting.
According to Telenor, selling Conax will help its broadcast unit focus on core activities as well as benefiting its Canal Digital customers.
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.”
Telenor hired JP Morgan, E&Y, German technology and management consultant Solon and Norwegian business law firm Thommessen for advice.
Kudelski mandated Credit Suisse as its financial adviser.
