Telenor ASA TELNY recently merged its cloud business with Jotta AS. The newly formed company, which will operate as an all-Norwegian cloud storage provider, aims to challenge international players while prioritizing data security, privacy and sustainability. With this merger, Jottacloud and Min Sky (Telenor’s existing cloud storage service) will be strengthened by combining cutting-edge technology, expertise, and infrastructure from both companies.
Key Takeaways of the Telenor-Jotta Merger
Both Telenor Software Lab and Jotta AS have deep expertise in the cloud storage industry. Telenor’s Min Sky has provided automatic image backup solutions for Norwegian consumers for over 10 years, while Jottacloud has become one of Europe’s top cloud storage providers. The joint venture between Telenor Amp and Jotta’s parent company, Hawk Infinity, will be structured as a 50/50 ownership model, ensuring equal investment and commitment from both sides.
With artificial intelligence playing a key role in the future of cloud storage, the merger ensures that both Min Sky and Jottacloud will continue to evolve with cutting-edge features. The new Norwegian cloud storage company will serve more than two million active customers and project revenues of around NOK 200 million in 2025. The company’s enterprise value is estimated at NOK 1.5 billion, reflecting synergies in operational efficiencies and storage costs.
After the merger is finalized, all data from Min Sky and Jottacloud will be consolidated within Jottacloud’s Norwegian data centers to strengthen data security and the company’s commitment to user privacy. The deal awaits approval from the Norwegian Competition Authority and is expected to close by the second quarter of 2025.
Synergies in AI-driven product development solidifies Telenor’s position as an innovator in cloud storage. In March 2025, TELNY and its partner ecosystem unveiled the 5G Solutions Lab, a cutting-edge 5G test facility in Gothenburg, Sweden. This test facility is designed to accelerate the development and deployment of AI-powered industrial solutions using the advanced capabilities of 5G. The initiative is aimed at enabling predictive maintenance, real-time monitoring and enhanced operational efficiencies for businesses across industries.
TELNY’s Zacks Rank & Stock Price Performance
Currently, Telenor carries a Zacks Rank #4 (Sell). Shares of the company have gained 27.3% in the past year against the sub-industry’s decline of 11.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Ubiquiti Inc. UI and Arista Networks, Inc. ANET. IDCC & UI presently sport a Zacks Rank #1 (Strong Buy) each, while ANET carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.
Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 33.3%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.
Arista delivered a trailing four-quarter average earnings surprise of 12.87%. It has a long-term growth expectation of 14.41%. It supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
Telenor ASA (TELNY) : Free Stock Analysis Report
Ubiquiti Inc. (UI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Comments