Teleste has sold its Broadband Networks' planning and services unit in Switzerland to the local management and a private investor

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Jun 28, 2023, 05:46 ET

TURKU, Finland, June 28, 2023 /PRNewswire/ -- The divestment of the services business in Switzerland will sharpen Teleste's focus on its Broadband Networks' technology business. The divestment does not have any impact on Teleste's service business in other countries.

The services business in Switzerland has been operated by Teleste Network Services SA, a subsidiary of Teleste Corporation. In 2022, Teleste Network Services SA reported net sales of CHF 5.4 million. The company had 34 employees at the end of 2022.

The purchase price has been settled in cash. The transaction is estimated to increase Teleste's cash flow by EUR 2.2 million in Q2 2023, but to have no material impact on the operating result. Teleste will report the proceeds from the sale as other operating income. The sale is categorized as an extraordinary item and the income will be eliminated from the adjusted operating result and the adjusted earnings per share. The buyers and Teleste have agreed not to disclose the transaction value.

"Teleste continues to provide its Broadband Networks products and technologies to the Swiss customers both directly and via its sales partner network, and this divestment has no impact on our product deliveries and deployments. We look forward to fostering our traditionally strong presence in Switzerland," said Mika Kavanti, Vice President of Sales, Broadband Networks, Teleste

The operations of Teleste Network Services SA will continue unchanged under the new ownership. The level and availability of services remain ensured.

"The change of ownership will have no impact on our current skills and services. The local management and all the staff will remain unchanged and will continue to serve our customers with the same high level of quality. Customer satisfaction will remain our top priority. Greater independence will allow us to be more flexible and better adapted to our customers' needs. The services will be rebranded under new name later this year." stated Raphael Beaud, Managing Director of Teleste Network Services SA.

Inquiries for more information:
Esa Harju
CEO, Teleste Corporation

Juha Hyytiäinen
CFO, Teleste Corporation

Tel. +358 2 2605 611

About Teleste

Teleste offers an integrated product and service portfolio that makes it possible to build and run a better networked society. Our solutions bring television and broadband services to you, secure your safety in public places and guide your use of public transport. With solid industry experience and drive for innovations, we are a leading international company in broadband, security and information technologies and related services. We connect with our customers through a global network of offices and partners. In 2022, Teleste's net sales reached EUR 165 million and it had approximately 860 employees. Teleste is listed on Nasdaq Helsinki. For more information, see www.teleste.com and follow @telestecorp on Twitter.