Nagra/Kudelski buying Conax
Nagra/Kudelski Group is buying Conax from Telenor Broadcast for roughly $256 million (NOK 1.5 billion).
Telenor Broadcast said its sale of Conax is part of its strategy of focusing on core activities. Telenor is a mobile network operator, but it also owns several businesses the develop satellite broadcasting technology, along with Canal Digital, a content company.
Conax provides telcos, cable, satellite, IP, mobile and terrestrial operators with flexible and solutions for the secure delivery of premium content, including its latest generation security platform, Conax Contego, which offers content protection across multiple consumer devices and operator platforms. The company claims approximately 380 customers worldwide representing 140 million pay-tv consumers in over 85 countries, for a global market share of approximately 7 percent.
Among Conax's customers is Canal Digital, and that relationship is expected to continue.
Nagra, which also does security, and middleware provider OpenTV, are also owned by Kudelski. Nagra volunteered nothing on how Conax and MediaAccess - the content protection product it already has - will fit together.
Conax has generated market traction as a partner of Evolution Digital. Five years ago the two companies collaborated on a CableCard that was qualified by CableLabs. More recently they worked on a hybrid IP video platform for Columbus Communications.
Patrik Hofbauer, SVP & CEO of Telenor Broadcast, said, "The Conax operation has 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."