Telia Company AB (Telia) has entered a binding agreement with Telavox AB (Telavox), a Nordic mobile virtual network operator (MVNO) and technology company, to acquire Telavox’s Nordic enterprise customer base for SEK 3.8 billion, plus a potential earn-out of SEK 0.2 billion. This customer base includes approximately 24,000 predominantly small- and medium-size businesses across four countries, comprising more than 325,000 end-users, of which more than 240,000 are mobile end-users. The transaction is in line with Telia’s strategy to strengthen its core connectivity business, and is intended to improve customer experience, accelerate growth and simplify operations. It is subject to customary regulatory approvals, with closing expected in Q1 2027.

As part of the transaction, Telia has entered a multi-year licensing agreement for Telavox’s Unified Communications as a Service (UCaaS) platform, which integrates telephony, PBX, messaging, meetings and contact center services. Telia will make the platform available both to the acquired Telavox customer base and Telia’s existing enterprise customers.

This will enhance Telia’s enterprise offering with an improved user experience that includes simplified self-service administration and AI-powered solutions that help businesses become more efficient and accessible to their customers. Over time, it will also reduce operational complexity and generate cost savings as Telia consolidates its technology platforms.

Patrik Hofbauer, Telia President and CEO: “We are further strengthening our leadership position in the Nordic enterprise market, by welcoming a substantial new customer base and talented team to Telia while accelerating the simplification of our operations. By consolidating our services into powerful unified platforms, we can become more efficient, accelerate innovation and growth, and deliver even better communications solutions to our enterprise customers across the Nordics.”

Viktor Karlsson, Telavox CEO: “I’m excited about what we can build together with Telia. This partnership will allow us to invest even more in AI, agentic customer experiences and self-service, while bringing our technology to many more businesses. Our customers will be in excellent hands with Telia.”

Approximately 180,000 of the mobile end-users included in the Telavox transaction are based in Sweden, 23,000 in Finland, 8,000 in Norway and 28,000 in Denmark. Prior to the transaction, the majority of Telavox mobile end-users in Sweden are served by Telia’s mobile network under a mobile wholesale agreement until 2027. The remaining end-users are served by a competitor’s network.

The acquired customer base currently generates approximately SEK 1.1 billion in annual revenue, around SEK 0.3 billion in EBITDA and around SEK 0.25 billion in free cash flow. Telia sees a clear case for achieving cost synergies of around SEK 0.2 billion, with the majority materializing in the first two years following closing of the transaction. By 2028, the free cash flow contribution before financing costs is expected to reach SEK 0.4 billion. In addition, Telia sees opportunities to generate revenue synergies through cross-selling and upselling its full portfolio of connectivity and digital services to the acquired customers.

The impact on Telia’s net debt to EBITDA ratio is expected to be an increase of approximately 0.1x. Telia’s mid-term target of at least SEK 10 billion of free cash flow by 2027 remains unchanged, as the acquisition is expected to have a limited post-financing impact on free cash flow in 2027.

Approximately 180 employees in commercial roles are expected to join Telia from Telavox in connection with the transaction.