By Dominic Chopping

Norwegian telecommunications provider Telenor and software group Hawk Infinity Software agreed to form a cloud storage joint venture that will seek to provide a Norway-based alternative to international tech giants.

"Growing geopolitical tensions have driven European consumers to seek alternatives to international technology services," the companies said.

The deal will see Hawk Infinity Software sell its Jotta cloud storage business to the joint venture ,with Telenor contributing its Telenor Software Lab unit.

Hawk Infinity Software and Telenor will each own 50% of the company.

The merged business will allow for a scaling up of capabilities and development while yielding synergies in secure data storage, artificial intelligence, and product development, they added.

The new company will serve over 2 million active customers and generate expected revenue of around 200 million Norwegian kroner ($18.9 million) in 2025. Its value is estimated at 1.5 billion kroner, including debt and synergies from storage costs.

"Most of us store our private photos on the cloud, and many are now questioning the security of data stored abroad," said Roland Rabben, Founder and Chief Executive of Jotta, who will also lead the new company.

"By offering secure storage on Norwegian soil, we believe our service will attract more customers both domestically and internationally."

The merger is subject to regulatory approval, with completion expected in the second quarter of 2025.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

March 19, 2025 11:04 ET (15:04 GMT)

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