"There is an ongoing consolidation in the security industry. To meet this development as a provider we need size, professionalism at all levels and innovation. The future will require increased investments in product and market development. The new corporate structure will enable us to meet the constant changes in the market more efficiently," says Stefan Albertsson, CEO of Multicom Security, who will become the CEO of the new company.

Both parties see clear synergies, as both companies have complementary products and overlapping customer portfolios. The companies are therefore well positioned to meet the changes in technology and market.

"Together we will be well positioned to increase the market share in Scandinavia and expand into new markets in Northern Europe. By combining experience, technology and strong growth, we will achieve greater efficiency and profitability, thereby increasing the opportunities for product and market development," says Harald Rønning, CEO of Safetel.

It will be further investigated whether the companies should legally merge in 2015.

The ownership is arranged through a new holding company where Multicom Security Manager; GMT Communications Partners LLP has a 60 percent stake and Safetel's owners; Viking Venture AS, Follum AS, Skaugen Private Equity AS, and a smaller group of owners has a 40 percent stake.