Norwegian telco Telenor has lined up a deal to acquire GlobalConnect's consumer fiber division for NOK 6.0 billion ($596 million).

As part of the deal, Telenor will add GlobalConnect's consumer fiber infrastructure assets, plus around 140,000 fiber customers.

Telenor said the move supports the company's fiber growth plans.

“This marks a strategic step forward – for our customers and for Telenor. By integrating the consumer part of GlobalConnect’s fiber network into our own, we will extend our reliable and high-performing services to even more households across the country,” said Benedicte Schilbred Fasmer, president and CEO of Telenor.

Telenor noted that the transaction is necessary for it to scale its fiber operations.

According to the company, its market share of fiber subscribers will grow from 22 percent to 29 percent.

During 2024, GlobalConnect’s consumer portfolio generated revenues of more than NOK 600 million ($59.4m).

GlobalConnect provides fiber-based broadband services to more than 900,000 private consumers and end-to-end connectivity solutions to 30,000 B2B customers via its 244,000 km fiber network across Denmark, Norway, Sweden, Germany, and Finland.

"As GlobalConnect is focusing our B2C business in the Nordics into a pure wholesale provider, it has been a natural next step to divest B2C Norway," said Martin Lippert, CEO of GlobalConnect. "We are confident that Telenor will take good care of our B2C customers and employees going forward. B2B and Carrier customers in Norway remain a strategic focus, and we will continue our investments in these areas."

Telenor predicts EBITDA of around NOK 300 million ($29.7m) in each of the first two years of operations after integration and restructuring costs.

Telenor didn't specify an expected closing date for the deal, but did note that the transaction is subject to approval by the Norwegian Competition Authority.