Tieto buys Nordic banking tech rival Evry for €1.3bn
Tieto’s goal in the deal is to create a Nordic digital consultancy software offering, cloud solutions, robotics, and other services. The new group is slated to have 24,000 employees and annual revenues of €3 billion ($3.4 billion).
“This combination will create a company well positioned to be a leading provider of digital transformation across the Nordics for the benefit of our customers, employees, shareholders and the society,” says Kimmo Alkio, president and CEO of Tieto. “I believe we will create exciting opportunities for professional and personal growth for employees in both companies – and a strong value proposition for our customers. I foresee a very exciting journey ahead.”
To close successfully, the deal requires support from two-thirds of the shareholders in each firm. It is expected to close in the last quarter of this year but negotiations may drag into Q1 2020.
The new company will be called TietoEvry and will serve thousands of clients across 90 countries. Alkio will be CEO of the combined company, while Evry’s current CEO Per Hove will continue in his role until the deal closes. The combined company will be headquartered in Espoo, Finland.
Last year, Evry landed an eight-year, $75 million contract with Handelsbanken in Finland, and also signed Bankgirot for a seven-year deal worth $77 million.
Evry claims 10,000+ customers across the private and public sectors and 8,800 employees across nine countries. The company is listed on the Oslo stock exchange and has a market capitalisation of $1.2 billion.