Elisa offloads majority stake video conferencing business in share swap agreement
Elisa will walk away with a 37.5% stake in MVC Mobile VideoCommunication’s international video-conferencing business
Elisa intends to sell the majority stake in its workplace collaboration subsidiary Elisa Videra to MVC Mobile VideoCommunication. The deal is a share swap, and so, the Finnish operator will walk away with a 37.5% stake in MVC Mobile VideoCommunication’s international video-conferencing business MVC Videra.
The Germany-based MVC Mobile VideoCommunication provides a full suite of video conferencing and unified communication services.
Service providers with video conferencing and workplace collaboration offerings had a leg up during the COVID-19 pandemic when offices were shuttered and the entire world transitioned to working from home. While many have returned to the office, a hybrid environment remains for some companies. Such shifts in how the world’s employees work has required company’s that have workplace collaboration services — like Elisa and MVC Mobile VideoCommunication — to rethink and reshuffle some of these assets.
“The two companies complement each other, and this transaction strengthens their competitiveness and accelerates their growth and value creation,” commented says Elisa’s CFO, Jari Kinnunen. “The companies have cutting-edge expertise in providing demanding international solutions, and together, they form a new, stronger provider of international videoconferencing services.”
Elisa further explained that the deal aligns with its international strategy to focus on its software business, and that while there will be a €25 million negative impact on annual revenue, there will also be a “slightly positive” effect on pre-tax profit. The operator also pointed to MVC’s “strong foothold in Central Europe” as a motivator behind the agreement.
The deal is expected to close next month, and MVC’s CEO Sven Damberger will continue to serve as CEO of the new company.