Finnish operator Elisa revealed plans to sell a majority stake in its workplace collaboration subsidiary Elisa Videra, with the unit set to be combined with peer MVC Mobile VideoCommunication.
The transaction is being conducted as a share swap, with Elisa set to hold a 37.5 per cent share of the newly formed international video-conferencing player MVC Videra. The majority shareholder in the business will be MVC Mobile VideoCommunication owner KLP Vermogensverwaltung.
Elisa indicated the deal is in line with its international strategy to focus on its software business, adding it will have a €25 million negative impact on annual revenue but a “slightly positive” effect on pre-tax profit.
It added while Videra had a global customer base, MVC Mobile VideoCommunication had a “strong foothold” in central Europe.
The new entity will be led by current MVC CEO Sven Damberger.
Elisa CFO Jari Kinnunen said the enterprise services complement each other and the “transaction strengthens their competitiveness” in the international videoconferencing sector.
The deal is expected to close next month.