Telia sells international carrier business to Polhem Infra

Telia Company has agreed to sell its international carrier business, Telia Carrier, to Polhem Infra for SEK 9,450 million on a cash and debt free basis.
Telia network offers
Telia Company has also entered into a partnership with Telia Carrier, securing continuous network solutions to Telia’s customers.

Telia Carrier holds the top position in the ranking of companies with Internet backbone networks. Content, services and operator customers of Telia Carrier account for 65 percent of global Internet routes.

Its network spans across Europe, North America, and Asia, connecting customers in more than 120 countries, with the Scandinavian footprint being particularly strong through the so-called Scandinavian Ring – the part of Telia Carrier’s network that connects major Baltic and Nordic cities.

For 2019, Telia Carrier reported net sales of SEK 5,388 million, an EBITDA excluding IFRS-16 of SEK 500 million (SEK 888 million including IFRS-16) and capital expenditures of SEK 396 million resulting in EBITDA, excluding IFRS-16, less capital expenditures, of SEK 104 million.

The agreed price for Telia Carrier equals an EV/EBITDA, excluding IFRS-16, multiple for 2019 of 18.9x. The transaction is expected to generate a capital gain of approximately SEK 7 billion at closing.

The change of ownership will enable Telia Carrier, with its 530 employees, to drive a level of investment in network development, services and customer care programs that brings benefits to content providers, operators and enterprises beyond that of any competitor.

”The sale of Telia Carrier highlights the value Telia has built in its digital infrastructure. As a consequence, we can now concentrate on our Nordic and Baltic footprint,” Allison Kirkby, president and CEO of Telia Company, said.

The acquisition is Polhem Infra’s first investment in digital infrastructure. Polhem Infra is jointly owned by the Swedish Pension Funds; First AP Fund, Third AP Fund and Fourth AP Fund.