Elisa sells majority stake in Elisa Videra's business

ELISA INVESTOR NEWS RELEASE, 2 NOVEMBER 2023 AT 3:05 PM

The businesses of Elisa Corporation's subsidiary Elisa Videra and the German company MVC Mobile VideoCommunication GmbH (owned by KLP Vermögensverwaltungs GmbH) will be combined into MVC. KLP will have a 62.5% holding and Elisa 37.5% of MVC Videra. The transaction is being conducted as a share swap. Going forward, the company will not be consolidated into the Elisa Group. The transaction is subject to approval by authority in Finland, and the estimated closing is in December 2023.

In line with its international businesses strategy, Elisa is focusing on its software businesses. The transaction will have a negative impact of approximately EUR 25 million on revenue at an annual level. The impact on EBITDA will be slightly positive, while EPS will not be materially affected.

“The two companies complement each other, and this transaction strengthens their competitiveness and accelerates their growth and value creation. The companies have cutting-edge expertise in providing demanding international solutions, and together, they form a new, stronger provider of international videoconferencing services,” says Elisa’s CFO, Jari Kinnunen.

MVC has a strong foothold in Central Europe, with operations in Germany, Switzerland and Austria. Elisa Videra has a global customer base, 24/7 customer service and advanced multi-technological capability, especially as a provider of secure video services. In 2023, the companies’ combined turnover will be around EUR 45 million, and they will employ a total of around 150 people. Sven Damberger, owner of KLP and CEO of MVC, will continue to serve as CEO of the new company.

Additional information:

Mr Jari Kinnunen, CFO, tel. +358 10 262 9510

ELISA CORPORATION

Vesa Sahivirta
IR Director
tel. +358 50 520 5555

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