Kudelski buys Conax for €164m
March 26, 2014
By Colin Mann
The Kudelski Group has moved to consolidate the content protection and revenue assurance sector by agreeing to acquire Conax from Telenor Broadcast.
“We are very pleased to welcome the Conax team to the Kudelski Group,” said André Kudelski, Chairman and Chief Executive Officer of 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.”
Conax’s customer base will benefit from the Kudelski Group’s broad portfolio of best-in-class products, including its next-generation OpenTV5 middleware, multiscreen/OTT solutions and SmarDTV’s advanced conditional access modules.
Conax serves approximately 380 customers worldwide representing 140 million pay-tv consumers in over 85 countries. Conax has a broad product portfolio encompassing both traditional broadcast products and complete solutions for multi-screen TV distribution.
According to Telenor Broadcast, the sale of Conax marks an important step in pursuing its stated strategy of focusing on its core activities within the Telenor Group. The acquisition of Conax by Kudelski Group will benefit Conax’s customers, including Telenor Broadcast-owned Canal Digital in the Nordics.
Patrik Hofbauer, SVP and CEO of Telenor Broadcast, said the Conax operation had 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,” he advised.
The transaction is expected to close within ten days. The net purchase price is approximately CHF200 million (€164m).